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For Active and Retired Federal Employees

RETIREMENT LIFE

MARCH 2012, Volume 88, Number 3

LEGISLATIVE REPORT 8 10

Fed Benefits Again on Chopping Block

14 16

Obama Proposes 0.5 Percent Pay Raise

2012 Congressional Budget Process: What Could Go Wrong

Civics 101: Meet Candidates, Set NARFE Apart

COVER STORY 18

NARFE-PAC: Feds’ Defense Fund Needed Now More Than Ever. NARFE needs as many lawmakers in Congress as possible to defend the pay and benefits of federal employees and retirees.

DEPARTMENTS 27 33 35 50

Questions & Answers

Cover design by Jim Richards. ABOUT THE COVER: Why is there an umbrella on the cover? The new NARFE-PAC giving program awards one to members who give at the $100 level!

COLUMNS 6 Message From the National President

22 24 26 32

Managing Money Live Well Alzheimer’s Update Report From the Regions

SPECIAL SECTIONS 36 National Convention Update – NARFE Proposed Bylaws and Standing Rules

47 NARFE Scholarship Application

NARFE News Out & About For the Record: TSP Investments, COLA Chart

‘Like’ us on Facebook (NARFE National Headquarters) visit us online at www.narfe.org

NARFE Resources NARFE-PAC Coupon . . . . . . . .20 Membership Application . . . . . .21 Alzheimer’s Coupon . . . . . . . . .26 Silver Circle Coupon . . . . . . . . .34 NARFE-FEEA Coupon . . . . . . .35 NARFE Member Perks . . . . . . .48

NATIONAL OFFICERS

Here’s How to Contact NARFE ...

JOSEPH A. BEAUDOIN, President; natpres@narfe.org PAUL H. CAREW, Vice President; natvp@narfe.org ELAINE HUGHES, Secretary; natsec@narfe.org RICHARD G. THISSEN, Treasurer; nattreas@narfe.org

If you want to: • Join NARFE Call (toll-free):

800-627-3394 or 800-456-8410 Or go to: www.narfe.org

If you want to: • Change your address • Check your membership status • Find out dues owed • Provide a death notification Call (toll-free):

800-456-8410 Email:

memberrecords@narfe.org If you want to: • Add your e-mail address to your record (to receive GEMS e-mail messages, the Legislative Hotline and NARFE NewsWatch): Call (toll-free):

800-456-8410 Email:

memberrecords@narfe.org

REGIONAL VICE PRESIDENTS REGION I Augie Stratoti (Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont) Tel: 603-889-1073 Email: augrs@juno.com REGION II Ronald P. Bowers (Delaware, District of Columbia, Maryland, New Jersey and Pennsylvania) Tel: 410-308-0420 Email: narferbowers@msn.com REGION III Donald Stewart (Alabama, Florida, Georgia, Mississippi, Puerto Rico, South Carolina and Virgin Islands) Tel: 305-442-6388 Email: dejs33149@aol.com REGION IV Paul E. Johnson (Illinois, Indiana, Michigan, Ohio and Wisconsin) Tel: 812-306-5137 Email: pejohnson@tds.net REGION V Carol R. Ek (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) Tel: 620-241-1131 Email: ek617@att.net

REGION VI Jerome S. Smith (Arkansas, Louisiana, Oklahoma, Republic of Panama and Texas) Tel: 903-534-5849 Email: retiredjer@aol.com REGION VII Betty Lucero-Turner (Arizona, Colorado, New Mexico, Utah and Wyoming) Tel: 719-583-0910 Email: blturner2311@aol.com REGION VIII Helen L. Zajac (California, Guam, Hawaii, Nevada and Republic of Philippines) Tel: 707-644-7565 Email: hlz17@aol.com REGION IX Lanny G. Ross (Alaska, Idaho, Montana, Oregon and Washington) Tel: 360-692-9741 Email: lannyjean@comcast.net REGION X William F. Martin (Kentucky, North Carolina, Tennessee, Virginia and West Virginia) Tel: 540-872-3345 Email: narfe2065@hughes.net

E-mail: memberrecords@narfeorg

If you want to:

• Hear the Legislative Hotline Call (toll-free):

877-217-8234 If you want to: • Get materials to recruit members: Call (toll-free):

800-627-3394 Email:

rr@narfe.org

For any other NARFE matter: Call NARFE Headquarters

703-838-7760 Email: hq@narfe.org Fax:703-838-7785 Write: NARFE 606 N. Washington St. Alexandria,VA 22314

NARFE MAGAZINE Volume 88,Number 3 Editor, Margaret M. Carter Assistant Editor, Donna J. St. John Editorial Administrator, Toni Vallario Graphic Designer, Beth Bedard Contributing Designers, Charlene Gridley, Jim Richards Editorial Board: Joseph A. Beaudoin, Paul H. Carew, Elaine Hughes, Richard G. Thissen Editorial Office: NARFE, Attn: NARFE magazine, 606 North Washington St., Alexandria, VA 22314-1914; Phone: 703-838-7760; Fax: 703-838-7781; Email: rl@narfe.org Advertising Sales: Warren Berger, Media People Inc., 122 East 42nd Street, Suite 725, New York, NY 10168; 212-779-7172, ext. 223; Email: wberger@mediapeople.com

NARFE for the Visually Impaired On the Telephone: This publication can be heard on the telephone by persons who have trouble seeing or reading the print edition. For more information, contact the National Federation of the Blind NFB-NEWSLINE® service at 866-504-7300 or go to www.nfbnewsline.org. On Tape: Issues of NARFE magazine are also available on cassette through the National Library Service for the Blind and Physically Handicapped. To find out about availability in your area, call 800-424-8567 and ask for the Reference Section. The Association, since July 1970, has been classified by the IRS as a tax exempt labor organization [not a union]; however, dues and gifts or contributions to the Association are not deductible as charitable contributions for income tax purposes.

NARFE (ISSN 1948-4453) is published monthly by the National Active and Retired Federal Employees Association (NARFE), 606 N. Washington St.,Alexandria,VA 22314. Periodicals postage paid at Alexandria,VA, and additional mailing offices. Members: Annual dues includes subscription. Non-member subscription rate $45. Postmaster: Send address change to: NARFE Attn:Member Records,NARFE 606 N.Washington St.,Alexandria,VA 22314.To ensure prompt delivery,members should also forward changes of address without delay. Because of the volume involved, NARFE cannot acknowledge nor be responsible for unsolicited pictures and manuscripts, although every reasonable precaution is taken. All submissions become the property of NARFE. Copyright ©, 2012, NARFE. Advertisements in the magazine are not endorsements of products and/or services by NARFE, unless officially stated in the ad. We shall accept advertising on the same basis as other reputable publications: that is, we shall not knowingly permit a dishonest advertisement to appear in NARFE, but at the same time we will not undertake to guarantee the reliability of our advertisers.

MARCH 2012 | NARFE

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A Message From the National President

One Thought at a Time

s we close the first quarter of 2012, there are a few thoughts I’d like to share with you, updating recent events and highlighting our current focus. During the past year, we lost seven people who were very close to us at NARFE Headquarters. Within 12 months, we lost four employees: Kathy Thigpen, known as one who could “get things done” for chapters and federations; National Treasurer Charles W. “Charley” Saylor, who passed away after less than six months in office; Linda Jones, who worked in Member Records; and Darryl Ward, who worked in the Mail Room. In that same period, we also lost a former employee, Willie Pullen, who had retired from the Mail Room. In one weekend in December, we lost former Massachusetts Federation President and Region I Vice President Gil Blaisdell; and Gail Martin, wife of Region X Vice President Bill Martin. Our thoughts and prayers go out to the families of these valued colleagues and friends. Our “Protect America’s Heartbeat” campaign, financed through the generous donations of members, is continuing to be effective. The campaign is helping to change the unfair image of federal workers and retirees, and we did not lose any of our retirement benefits as a result of last year’s budget battles. But the decision by President Obama to freeze federal pay increases for two years was a blow to active federal employees. The fight is far from over, and NARFE will continue to stay focused on protecting your earned benefits. We also are working closely with our colleagues from the national postal employee organizations to ensure that reforming the U.S. Postal Service is done in a way that won’t hurt postal workers and retirees. In my February column, I mentioned the importance of the

upcoming National Convention in Reno-Sparks, NV, August 26-30. There will be a crucial vote on a resolution to revise NARFE’s Bylaws. The Bylaws Revision Committee’s proposal can be found on pp. 38-46. You have until March 31 to submit comments to the committee at brc@narfe.org. The committee will present final recommendations at the convention. Members interested in running for a national officer position should submit their candidate statements now. The last opportunity to publish candidate statements will be the July issue of NARFE magazine. The deadline is May 1. NARFE federation conventions are just around the corner (see schedule, p. 33). The first one will be held March 17 in Panama, with the bulk of them scheduled for April and May. This year, for the first time, NARFE national officers and Headquarters staff are available to all federations via Skype, GoToMeeting or other electronic means. For the eighth consecutive year, we are dedicating the month of March to NARFE-PAC (see p. 18) – the only NARFE solicitation that directly supports our core legislative mission and complements members’ voting power, grass-roots activism and our lobbying efforts on Capitol Hill. Because our benefits are likely to remain a target for some time to come, your NARFE-PAC contributions are more important than ever in our efforts to support candidates whose records show that they are supporters of federal workers and retirees. Finally, but certainly not least in terms of importance, is a concentration at NARFE Headquarters on recruitment and retention. With the assistance of Marketing General Inc., and the help of all NARFE chapters and federations, we are vigorously pursuing new avenues to attract new members and making extra efforts to keep our existing members on the rolls. I think we will succeed – if we all work together.

YOU HAVE until March 31 to submit your comments on the Bylaws Revision Committee’s proposed Bylaws changes.

Joseph A. Beaudoin natpres@narfe.org

MARCH 2012 | NARFE

LEGISLATIVE REPORT

Fed Benefits Again on Conference Chopping Block Committee to

s Congress wrapped up work in December, federal employees and retirees dodged the bullet again. During the debate over the ways to “offset” (or pay for) the cost of extending unemployment benefits

and the payroll tax holiday, as well as the so-called “doc fix,” which would prevent Medicare payments to physicians from being slashed by

about 30 percent, lawmakers abandoned efforts to put federal employee benefits on the chopping block. When a bipartisan and bicameral agreement could not be reached, congressional leaders decided to pass a temporary extension to these programs through February 29, resorting to mortgage fees to cover the costs of the short-term fix.

WELL, THEY’RE BACK! Now that Congress has returned from recess, negotiators named to a House-Senate conference committee (see list of members, p. 10) have been meeting and will determine if and what the offsets will be, as lawmakers aim to complete the work begun in December. In round one in December, the federal community was looking at $65 billion in cuts to cover an estimated $200 billion in costs for the year-long “holiday” package. Is this the “shared” sacrifice that congressional leaders have

Consider Cuts

discussed in the past? Is it fair for 2 percent of American workers to be shouldering nearly one-third of the cost of a payroll tax holiday for everyone else? The House-passed version of the so-called “extenders” bill, H.R. 3630, included the following: • A one-year extension of the federal pay freeze; • Requiring Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS) employees to contribute an additional 1.5 percent of their salary toward their retirement; • Eliminating the FERS Social Security supplement, except for those in age-based mandatory retirement positions (starting in 2013); and • Establishing a new retirement plan in lieu of FERS for those hired in 2013 and workers already on the rolls but with less than five years of federal

■ The House will be out of

session March 9-18 for a Constituent Work Week. ■ March 2012 marks the

centennial celebration of the Japanese cherry blossom trees along the Tidal Basin in Washington, DC. In 1912, the city of Tokyo, Japan, gave our nation’s capital 3,000 trees. In 1927, a group of school children re-enacted the initial planting and other activities, thus holding the first festival. ■ Remember to “spring

forward” on March 11 as daylight saving time begins. As you go to bed on Saturday, March 10, set your clocks ahead one hour. Daylight saving time also is an excellent opportunity to check the batteries in your smoke detectors.

LEGISLATIVE HOTLINE Toll-free! (24 Hours): 877-217-8234 Legislative Action Center: www.narfe.org MARCH 2012 | NARFE

Legislative Report service (nonvested employees). Under this program, employees would pay 10.2 percent of their salary to the FERS defined benefit. Their annuity would be based on their highest five years of service (not the current highest three), and the annuity calculation would be based on a 0.7 percent multiplier (not the current 1.1 percent). This amounts to a reduction of close to 40 percent from the current retirement benefit calculation. The savings associated with these changes amount to approximately $65 billion. Even if negotiators cut federal employee benefits to fi-

STORY HIGHLIGHTS ■ The House passed a bill that would cut federal pay

and retirement benefits to finance extending the federal payroll tax holiday and other measures for a year. The Senate passed a bill that would use other ways to pay for this tax-holiday package. ■ A House-Senate conference committee must come up with a compromise bill. ■ NARFE is mobilizing opposition to the House bill, asking all members to contact their legislators on February 15 to oppose cuts in federal pay and benefits.

House-Senate Conferees Senate Sen. John Kyl, R-AZ Sen. Jack Reed, D-RI Sen. John Barrasso, R-WY Sen. Bob Casey, D-PA Sen. Benjamin L. Cardin, Sen. Michael D. Crapo, R-ID D-MD Sen. Max Baucus, D-MT House Rep. Dave Camp, R-MI Rep. Chris Van Hollen, D- MD Rep. Fred Upton, R-MI Rep. AllysonY. Schwartz, D-PA Rep. Nan Hayworth, R-NY Rep. Sander M. Levin, D-MI Rep.Tom Reed, R-NY Rep. Xavier Becerra, D-CA Rep.Tom Price, R-GA Rep. Henry A.Waxman, D-CA Rep. Kevin Brady, R-TX Rep. Greg Walden, R-OR Rep. Renee Ellmers, R-NC

nance the extension, it is unclear what this means for the continuing effort to reduce federal spending and avoid deep cuts in domestic and Pentagon spending, scheduled to take effect January 2013. At press time, NARFE planned to hold a national “Call Congress Day” on February 15, asking all members to call their legislators and urge them to oppose additional cuts in federal employee pay and benefits. In addition, the Association encouraged all NARFE members to send an email message to their members of Congress through www.ProtectAmericasHeartbeat.org or NARFE’s Legislative Action Center at www.narfe.org. The Association also planned to run commercials on radio stations in Washington, DC, aimed at members of Congress, as well as federal employees and retirees in that area.

By Julie Tagen, Legislative Director

2012 Congressional Budget Process: What Could Go Wrong

he year 2011 was anything but “standard operating procedure” in Washington when it came to the congressional budget process. Between a near-default in the statutory limit on the public debt to multiple occasions of near-government shutdowns, the process first put in place nearly four decades ago provided little guidance to witnesses of last year’s brinkmanship. To help you better understand the manner in which the process is supposed to work under “regular order,” we offer this thumbnail of the orderly process intended by the

STORY HIGHLIGHTS ■ A 1974 law sets out an orderly process for

establishing the federal budget each year. ■ It starts in February with the submission of

the budget by the president, and it is supposed to end October 1 with the start of the new fiscal year. ■ Last year, the process broke down and did not wrap up until December.

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Legislative Report lution sets out a blueprint for the fiscal year ahead (and spending and revenue levels for five years) and is enforced through House and Senate rules. What could go wrong? Despite majority control of the respective budget committees, either House or Senate committee could balk at reporting its budget blueprint. Similarly, contentious budget issues and parliamentary wrangling could delay final action in either house. Under those circumstances, each house must craft a process to guide its actions independently. • May 15 – The point at which, even in the absence of a budget resolution, annual appropriations bills may move forward in the House of Representatives. These 12 bills fund basic government operations. • June 15 – The date by which Congress is supposed to complete action on reconciliation legislation, if required by the budget resolution. Reconciliation measures are vehicles to bring major mandatory spending and revenue programs in line with the budget resolution and enjoy special treatment limiting debate and amendments in Congress. • By June 30 – The House completes action on all 12 annual appropriations bills. By tradition, the Senate appropriations process follows House action on the companion measures. What could go wrong? When House and Senate negotiators fail to agree on a common set of aggregate limits on annual appropriations bills, compromising on the line-item figures for every program, project and activity of government covered by annual apone low entrance fee – one large lifestyle. When you choose propriations is a daunting task. Add to one of our spacious floor plans with rates starting at $1,995, you that often contentious policy riders, can say good-bye to cooking, cleaning and home maintenance and it is all too common for lawmakers hassles forever. Instead, you can say hello to friends at the coffee to get bogged down in debate and disbar or restaurant, rejuvenate in the fitness center, participate pute, and the bills may never find their in volunteer programs, stimulate your mind with classes in way to the respective floors of the history, health, art and more. We offer peace of mind and place House and Senate. a priority on creating a joyful experience and thriving lifestyle. • October 1 – Fiscal year begins. The choices are unlimited; why wait another day? • November 6, 2012 – Presidential/Congressional Election Day. By ne20450 Huebner Road cessity, a budget matter. Following the San Antonio, Texas 78258 election, a “lame-duck” session could (888) 472-9109 provide the forum to extend tax cuts www.independencehill.com and address entitlement changes outlike us on facebook side the shadow of Election Day.

framers of the Congressional Budget and Impoundment Control Act of 1974. • First Monday in February – The president submits to Congress a comprehensive budget request outlining the administration’s policy and funding priorities as well as its projection of the economic outlook for the fiscal year ahead, in this case fiscal year (FY) 2013, which begins on October 1. What could go wrong? In some years, the annual budget process for the preceding year has not been completed until well after the beginning of the fiscal year on October 1. While the FY 2012 budget process was not wrapped up until last December, the administration’s preparations for FY 2013 appeared to stay on track, although the president’s budget will be delayed until February 13 – particularly with Office of Management and Budget Director Jack Lew’s departure to move into the position of White House chief of staff on February 1. • No later than April 15 – Congress completes action on the concurrent resolution on the budget. The budget reso-

The Stone Oak Lifestyle is within your reach.

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MARCH 2012 | NARFE

National Parks Tour of the Golden West

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Visit landmarks in NINE NATIONAL PARKS. Witness the giant Redwood trees in Kings Canyon and Sequoia National Parks, then be amazed at the rock formations and waterfalls in Yosemite National Park. Visit majestic Lake Tahoe and stop in historic Virginia City, Reno, Winnemucca and Elko, Nevada. In Utah tour the world’s largest man-made excavation – the Kennecott Copper Mine plus the Great Salt Lake! Next tour the unique rocks Arches’ National Park; and Canyonlands, with enchanting vistas carved by the Colorado and Green Rivers. Next visit Capitol Reef and Bryce Canyon National Parks and drive through the Dixie National Forest. Then it’s the grandest of all National Parks, The Grand Canyon, for both a day and night. Finally, try your luck in exciting Las Vegas with an included day excursion to Zion National Park.

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Hawaii Cruise & Tour 12 Days

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Start in Honolulu, Hawaii and exciting Waikiki Beach for one night. The following day board NCL’s Pride of America for the start of your Hawaii Cruise Experience. Sail upon the big, blue, Pacific to ports in Kahului, Maui (2-days), offering beautiful sea vistas; Hilo, the flower capital of Hawaii and Kona, Hawaii, known for its many island coffee plantations. Continue to Nawiliwili, Kauai, nicknamed the ‘Garden Island’ with glorious stretches of palm-fringed beaches and cruise the Na Pali Coast. Disembark in Honolulu and enjoy a city tour including, the Punch Bowl Crater, Pearl Harbor and the USS Arizona Memorial. Spend a final three days and nights in Waikiki with an included city tour of Honolulu and Pearl Harbor.

Elegant Danube River Cruise 14 Days

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Enjoy the YMT chartered, 4-star ship, the “TUI Melodia”! Round trip cruise from Passau … PLUS tour Germany! Start in Munich, Germany for one-night. Then travel to Schwangau and a guided tour of the famous Neuschwanstein (Disneyland) Castle and Rothenburg o.d. Tauber for an overnight stay. The following day you will leave for the Czech Republic stopping in Plzen, where Pilsner beer was created with an included brewery tour; followed by Bohemia and Prague. Spend the next day sightseeing before you embark. Your cruise includes the Danube’s highlights including Melk and Vienna, Austria (the classical city of music); Esztergom and Budapest Hungary; Bratislava, Slovakia; and Linz, Austria; before returning to Passau. Travel back to Munich with additional sightseeing, before flying home. Your “brand new” ship the TUI Melodia, constructed in 2011, offers a state-of-the-art, experience! Price includes (very limited) outside Porthole. *Add $300 per person for French Balcony.

Save on this Repositioning Cruise

Tour Northern Europe ~ Cruise to Miami 22 Days

Travel with other NARFE members departing September 23, 2012

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Start in beautiful Amsterdam, The Netherlands for 3 days and nights. See the Dam Square with the Royal Palace and New Church, plus a guided tour of an Amsterdam Diamond Factory and a visit to an outdoor museum showcasing Dutch Windmills, culture and architecture. Stop in historic Breman & Hamburg, Germany; and enjoy a ferry trip across the Baltic Sea to Copenhagen, Denmark; all with included sightseeing. Then board NCL’s Sun for a 14-day cruise. Ports include Lisbon, Portugal; a legendary city filled with cobblestone streets and Funchal, Madeira; “The Flower Isle” with beautiful beaches and lush, green forests. Then relax and unwind on your Freestyle cruise featuring 14 different restaurants where you can dine where and when you would like. A cruise-lovers delight! Arrive in Miami on October 14.

Autumn Leaves Tour 14 Days

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Start in Philadelphia with a city tour. Then your scenic journey begins offering spectacular and colorful vistas through Amish Country to Gettysburg where you will see the most important battlefield of the Civil War. Travel north with a stop at the Corning Museum of Glass into Ontario and awe-inspiring Niagara Falls. Then head back to upstate New York where you will board a cruise through the 1000 Islands. Next, drive through the six-millionacre civilized wilderness of the Adirondack region, with a stop in Lake Placid and then into the forest area of New England: The White Mountains, including Franconia Notch State Park, New Hampshire and Flume Gorge. Then drive along the New England coast to Boston, with a city tour; Cape Cod , exploring Chatham and Provincetown with coastal scenery and village shops; view the gorgeous Mansions of Newport, Rhode Island; drive along the Atlantic coast through Mystic Seport and New Haven, Connecticut; and New York City seeing all the sights of the “Big Apple.”

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Legislative Report

Obama Proposes 0.5 Percent Raise

he president’s budget for fiscal year 2013 will include a 0.5 percent pay increase for federal employees, according to an announcement from the White House. The budget was scheduled to be released February 13. President Obama proposed, and Congress passed, a twoyear pay freeze that began in 2011. Obama called for the freeze as a means for federal workers to share the burden of deficit reduction. Workers were still eligible for pay raises resulting from step increases and promotions. With the announcement of the small pay increase, administration officials said that the White House would no longer support pay freezes as a means to reduce the deficit. However, they acknowledged that the country still requires a tight budget, and the 0.5 percent federal pay raise was all that could be afforded. NARFE President Joseph A. Beaudoin called the announcement “a small breath of fresh air, considering today’s

STORY HIGHLIGHTS ■ President Obama will include a 0.5 percent pay raise

for federal employees in his fiscal year 2013 budget. ■ This will put the president at odds with the House, which passed a one-year extension to the current two-year pay freeze as part of a bill to extend the payroll tax holiday.

federal employees earn 26 percent less than their corporate counterparts.” Beaudoin added: “Our nation’s federal workers perform important jobs, and our government must offer competitive salaries to keep the most qualified Americans in such positions.” While not a large increase, the Obama proposal puts the president at odds with Congress. At the end of 2011, the House-passed bill to extend the payroll tax holiday included extending the pay freeze another year (see story, p. 8). Federal employee pay increases are negotiated during the budget process, although federal law calls for raises to be based on the rate of private-sector wage growth as determined by the Bureau of Labor Statistics (BLS). AcThe new DR® RapidFire™ Log Splitter cording to the BLS, average privateslices through logs in under two sector earnings grew approximately 2 seconds—up to six times faster percent in 2011, and federal emthan ordinary log splitters. ployees are, on average, underpaid by We’ve replaced 26.3 percent when compared with hydraulics with two similar nonfederal jobs. AdministraPATENT PENDING 74-pound cast tion officials estimated that the goviron flywheels that ernment would save $2 billion in fiscal generate massive power. year 2012 with the reduced raise. Split the toughest logs with For the first time in two years, fedease…guaranteed! eral civilian and military retirees and Social Security beneficiaries are reOUTSPLITS A ceiving a 3.6 percent automatic cost34-TON! Watch the of-living adjustment (COLA), detervideo online. mined by the change in the Con73893X © 2012 CHP sumer Price Index. Individuals who Call Today for a FREE DVD & Catalog! retired under the Federal Employees’ of new DR® Log Splitters including gas, electric, and 3-point hitch models! Compensation Act (FECA) saw a 3.2 TOLL FREE percent increase.

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By Sarah Holstine, Legislative Specialist MARCH 2012 | NARFE

Legislative Report CIVICS 101:

THE INFORMED CITIZEN

Meet Candidates, Set NARFE Apart

eetings with congressional candidates will distinguish federal employees and retirees from the hundreds of organizations bombarding Congress with conflicting messages. Many of these groups lack NARFE’s structure and footprint in every congressional district. With good planning, a well-executed multichapter forum for a congressional candidate, or the major candidates competing for a single seat, will bear fruit for many years to come.

STORY HIGHLIGHTS ■ Chapter and federation officers should make plans

now to host forums for congressional candidates. ■ All 435 House seats and 33 Senate seats are on the

ballot. ■ Redistricting will make candidates eager to address

voters in newly drawn districts. ■ A sample invitation is available on the NARFE

website, as are the names and addresses of congressional candidates.

PLAN NOW Chapter and federation officers should make plans now to meet with congressional candidates – incumbents, their challengers and candidates in the growing number of open seats. State conventions are ideal forums. August 3-September 9 is the scheduled “summer recess,” the largest block of time when incumbents are away from Capitol Hill. While many chapters are dark in August, making “Meet the Candidates” part of convention planning and programs is crucial. As supporting materials are prepared, they will be widely circulated.

Redistricting presents a once-in-a-decade challenge as well as a special opportunity. Almost all candidates will be particularly eager to address voters due to the uncertainty created by newly drawn districts. The greater the change in a district’s configuration, the greater the candidate’s uncertainty. Harness this decennial uncertainty on behalf of all current and future federal retirees. Get commitments from candidates before they fill their schedules.

SENATE

LATITUDE

Thirty-three Senate seats are on the ballot this year. Many will have hotly contested primaries. Nine senators are not seeking another term. Any contested election provides a special opportunity for an organized group of citizens, all of whom are eligible voters. Federation conventions feature NARFE’s heaviest hitters in a state, and should be used as forums to hear from and inquire about statewide candidates. Federation presidents, working with convention chairs, should invite senators and the host area representative. Senators seeking re-election and their challengers should be invited. At least consider allowing surrogates if the convention date collides with an incumbent’s need to be in Washington.

“Meeting Your Candidates” is not a “one size fits all” exercise. Even if an incumbent has refused all previous invitations, ask for a meeting. Be flexible. Offer a variety of dates or be open to any date with sufficient notice to gather the membership at a mutually convenient venue. NARFE member willingness to start early in the day may fit a campaign perfectly. An easily edited, generic “letter of invitation” is posted on the NARFE website (www.narfe.org/doc/SampleRequest LetterGeneral.doc). NARFE’s Legislative Action Center’s “Elections and Candidates” module (http://narfe.capwiz. com/election/home/) provides names and addresses of congressional candidates. Your legislative staff is keen to help. Legislative staff can even merge the candidate information into the sample letter and send it to the chapter, district or federation official for signature and mailing. Coordination among chapters is vital. “Meeting Your Candidates” will advance NARFE objectives now and for years to come.

Are You In the Loop? To get timely Legislative Alerts and the weekly Legislative Hotline, make sure NARFE has your e-mail address. Call 800-456-8410 or go to www.narfe.org.

REDISTRICTING

By Christopher Farrell, Legislative Representative MARCH 2012 | NARFE

REVEALED: Massive Hoard Makes Silver Dollar History American Entrepreneur Sells off Silver Fortune hen miners found silver in Virginia City in 1857, they knew they’d struck the mother lode. For the next twenty years, silver flowed faster than water out of the Nevada desert. It was a Wild West bonanza. After years of frenzied mining, the vein began to dry up and the town slowly died with it. It seemed like there was no more silver to be found in those hills.

Until I got a call from a Wild West friend. He was sitting on a collection of silver coins, minted just after silver was found in Virginia City. With the silver market as strong as it is, he decided that it was time to sell off his collection. We had hit the mother lode again.

Actual size is 38.1 mm

A ‘few bags’ become thirty! To call my friend a coin collector is an understatement. When he said he had a few 1000-coin bags of silver coins I was interested. When those silver coins turned out to be New Orleans Mint Morgan Silver Dollars from the 1880’s I was intrigued. And when those few bags turned out to be thirty, I was astounded. My buddy wasn’t sitting on a collection, he had a hoard! For a man who loves only the best things in life, I guess I shouldn’t have been so surprised.

One of the largest Silver Dollar hoards in decades For serious numismatists, hoards can come around once in a lifetime. Silver hoards are enormous collections of coins that have been stored away, often secretly, for safekeeping. With silver prices steadily rising over the past few years, many silver hoards have been sold off. Most assumed that hoards of Morgan Silver Dollars were a thing of the past… until now. Morgan Dollars are some of the most coveted coins on the market today. And with the hot silver market, most dealers cannot keep Morgan Dollars around for long. Due to this heavy demand, especially for the finest quality pieces, the price

of many Morgan dollars has gone up dramatically in the last six months alone. But because of the sheer scale of this massive hoard, we have been able to keep the price at a pre-frenzy level.

120-year-old Silver Dollars for as little as $85! Each of these silver dollars from the McClaren Collection Hoard (named for my friend’s beloved Mercedes SLR McLaren Supercar) are Brilliant Uncirculated Morgan dollars that look as fresh as they did when they were struck by the U.S. Mint in New Orleans over 120 years ago. The coins were submitted to the Professional Coin Grading Service (PCGS) for certification, grading and encapsulation. Once inspected, they were given a Choice Uncirculated grade for their superior quality. My Wild West friend worked for 25 years to amass this huge collection. He scoured the country looking for the finest Morgan Silver Dollars. He did that work for you— and this hidden silver treasure is now within your reach. These coins are over 100 years old—but they can now be yours for a little as $85!

Hoard has added another chapter to their amazing story. And now you can share in that history. We all want the finest things in life. It’s time to start your collection today.

Order Today Risk Free While they last, reserve your McClaren Hoard New Orleans Morgan Silver Dollar MS62 for only $99.00 + S&H. Each coin will bear the New Orleans mintmark and be dated 1883-1888 (dates our choice.) You must be 100% satisfied with your order, or simply return it within 30 days by insured mail for a prompt refund of the purchase price. McClaren Hoard New Orleans Morgan Choice Uncirculated $99.00 plus s/h

Order more and SAVE! Half Banker Roll (10 coins) $95.00 ea. plus s/h SAVE $50 Full Banker Roll (20 coins) $85.00 ea. plus s/h SAVE $280!

These Morgan Dollars have been extraordinary pieces of American history for over 120 years. The remarkable McClaren

Prices and availability subject to change without notice. Past performance is not a predictor of future performance. Note: GovMint.com is a private distributor of worldwide government coin issues and is not affiliated with the United States government. Facts and figures were deemed accurate as of December 2011. ©GovMint.com, 2012

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By Christopher Farrell, Legislative Representative, and John Hatton, Legislative Specialist

n the 30 years since its inception, NARFE-PAC, NARFE’s Political Action Committee, has never been in more critical need of contributions. As many members of Congress continue to treat our nation’s public servants as pawns in their battles to reorder the federal budget, NARFE needs as many lawmakers in Congress as possible to

defend the pay and benefits of federal employees and retirees. Through NARFE-PAC, you help elect (and re-elect) legislators who recognize the value of civil service, who understand the importance of recruiting and retaining the best and the brightest, and who support paying federal workers a fair day’s pay for a full day’s work — including reasonable health and retirement benefits. Your contribution to NARFE-PAC, the Federal Employees’ and Retirees’ Defense Fund, will help us support the candidates who support feds on our most important issues.

HISTORY In 1982, the National Executive Board, composed of the 10 regional vice presidents and four National Officers, voted to authorize the formation of NARFE-PAC. The formal PAC

committee is composed of the organization’s four National Officers. NARFE-PAC is registered with and regulated by the Federal Election Commission (FEC) and chartered to solicit, collect, disburse and disclose funds voluntarily contributed strictly for political purposes.

OPERATION In practice, NARFE-PAC is the sum of many modest, voluntary donations given specifically for political use in assisting the campaigns of House and Senate candidates who support giving federal workers and retirees a fair deal. In ever more expensive campaigns, NARFE-PAC gathers MARCH 2012 | NARFE

donations from many to be a force for all NARFE members – indeed, for all federal employees and retirees. By pooling our individual donations, we are able to maximize the impact of our financial resources on congressional campaigns. Assisting candidates who are ultimately successful in their bids for office helps NARFE get in the door to make its case to members

of Congress. And this access gives NARFE members a more powerful voice on Capitol Hill.

POLITICAL, NOT PARTISAN Many members contend that NARFE should not be “political.” Perhaps what these individuals really mean is that NARFE should not be “partisan” in its dealings with members

of Congress. This distinction is at the core of NARFE-PAC’s success. In each of the past 15 national elections, hundreds of candidates – incumbents and challengers; Republicans, Democrats and Independents – have been elected with NARFE-PAC help. Now, NARFEPAC needs your help. See the article at the bottom of this page on our new NARFE-PAC giving program. ■

How NARFE-PAC Decisions Are Made

he primary factor in deciding whether a candidate receives a contribution from NARFE-PAC is whether supporting the candidate is likely to benefit NARFE members, as federal employees and retirees. Arriving at this determination requires finding

the answers to several key questions. First, does the candidate support NARFE’s agenda of protecting the earned compensation and benefits of federal employees and retirees? The candidate’s voting record is the best indication of this. Candidates can make broad statements in support of federal

employees or even co-sponsor bills that have little chance of reaching the floor for a vote, but it is their votes that count the most. Another important question is how much influence a candidate will have on issues affecting NARFE members.

What’s Your Level? The More You Give,the More You Get

n a new giving-levels program,NARFE will now recognize generous NARFE-PAC donors based on the following contributions (made over the course of the 2011-2012 election cycle): • $20 – Basic Level 2011-2012 NARFE-PAC pin (red,white and blue) • $50 – Silver Level 2011-2012 NARFE-PAC pin • $100 – Gold Level 2011-2012 NARFE-PAC pin,plus a red,white and blue NARFE umbrella. Additionally,members will now be able to sign up for a monthly contribution of $10 or more.If you choose this option,you will be recognized with a 2011-2012 NARFE-PAC Sustainer pin. You will have the option to sign up for monthly credit card contributions on the form provided with a letter NARFE members will receive soon from NARFE President JosephA.Beaudoin requesting NARFE-PAC contributions. The letter is scheduled to be mailed the first week of March. Chapter NARFE-PAC officers may request supplies of the Basic Level ($20) NARFE-PAC pin to promote contributions at chapter meetings.Due to lower supplies,the umbrellas and the Silver,Gold and Sustainer pins will be distributed primarily from NARFE Headquarters. In addition to giving via the upcoming mail solicitation,members can give online at the NARFE website,by using the coupon on page 20 or at chapter meetings.

NARFE | MARCH 2012

Is the candidate the chairman or a member of a key committee that has jurisdiction over NARFE issues, such as the House Committee on Oversight and Government Reform? Does the senator or representative hold a leadership position to expedite passage of friendly legislation or block an unfriendly bill? Has the lawmaker worked behind the scenes to help NARFE accomplish a legislative goal? How accessible and receptive is the legislator to NARFE, both locally and in the Washington, DC, area? Even if a candidate has clout, it may not help if he or she neither supports the NARFE agenda nor listens to it. Conversely, some legislators whose views tend to clash with NARFE’s positions may be open to hearing our arguments and concerns, and may at least be willing to discuss compromise solutions. The opinions of NARFE officers and activists within a congressional district or state regarding the

lawmaker’s accessibility to NARFE members are particularly important in determining how willing the candidate is to work with our organization. Finally, how competitive is the candidate’s election? If NARFE-PAC’s contribution could make the difference between the election or re-election of a representative or senator who supports our issues and one who does not, that contribution carries more weight than in a less-competitive election, all else being equal. We get more bang for our buck if the NARFE-PAC contribution made to a candidate is the last dollar that results in victory. Even if a candidate would be NARFE’s ideal legislator, a candidate likely to lose is unlikely to be helpful to our interests. On the other hand, knowing that a member of Congress supports our agenda, is receptive to our members, is influential on NARFE issues and has a less-competitive campaign makes the decision to offer a PAC contribution easy.

NARFE-PAC Contribution Form

NARFE-PAC CONSULTATION Before the National Officers make the final decision regarding a NARFEPAC contribution to a congressional candidate, the Legislative Department consults with the federation NARFEPAC coordinator to determine the degree to which the candidate has been accessible to NARFE members, and responsive to their concerns and communications. In turn, the federation NARFE-PAC coordinator should consult with local chapter officers in the candidate’s district. The consultative process encourages candidates to reach out to local chapter and federation officers. This provides an opportunity to talk about our issues and establish a relationship. But remember that this is an opportunity to inform, not to suggest that campaign contributions are tied to any official acts. That is not what NARFE-PAC is for, and it is against the law. ■ Payment Information

Name: _____________________________________________ I would likeMonthly to make a monthly card contribution contributions qualify you tocredit receive a NARFE-PAC Member ID#to(if available): ____________________________ NARFE-PAC of: Sustainer lapel pin, along with the basic, silver and gold level lapel pins and the NARFE umbrella once the requisite level has Address: ___________________________________________ $10/monthbeen reached for each item. __________________________________________________ $25/month -or Check or money order enclosed Other:______/month (minimum of $10) (below; required for monthly contribution) Credit Card -orDiscover AMEX I would like to make a one-time contribution of: Card Type: MasterCard Visa D

$100 (qualifies for gold 2011-12 NARFE-PAC lapel pin and NARFE umbrella) $50 (qualifies for silver 2011-2012 NARFE-PAC lapel pin)

Card #: ____________________________________________ Expiration Date: ____ / ____ Name on Card: ______________________________________

$20 (qualifies for basic 2011-2012 NARFE-PAC Signature: __________________________________________

Only members of the National Active and Retired Date: __________________ Federal Employees Association may contribute to NARFE- Please send check, money order or credit card information to: PAC. NARFE will neither favor nor disadvantage anyone based on Attn: Budget & Finance / NARFE / 606 N. Washington St. the amount of a contribution, or the failure to make a voluntary Alexandria, VA 22314-1914

MARCH 2012 | NARFE

Join

NARFE

Who can join?

Today!

To apply:

Membership is open to civilians in any agency of the federal government including: • Retirees • Active federal employees • Spouses and former spouses of active and retired federal employees • Former employees eligible for deferred annuity • Survivors of those eligible to join NARFE

Check out eNAR FE, ou r new electronic m embership option, at www.NAR FE .org

• Complete the application below. • Enclose payment information, bill pay, check or money order payable to NARFE, or request to be billed. • Or go to our website at www.narfe.org. • Or call us at 800-627-3394 and join today!

Enrollment includes membership in a local chapter and the national association, plus a subscription to NARFE’s monthly publication, NARFE magazine.

NARFE MEMBERSHIP APPLICATION For Active and Retired Federal Employees 1. Choose all that apply: Retiree Spouse Survivor

Active employee Former spouse Former employee

2. Also enroll my spouse __________________________

www.narfe.org

Contact Information:

Full Name: Mr./Mrs./Miss/Ms. full name

3. Please enroll me in NARFE chapter ______________

Street Address

Apt./Unit

City/State/ZIP

4. __________ $45 x __________ = __________ Total payment (check, bill pay or money order payable Email Address to NARFE) Bill me (Membership starts when payment is received) Date of Birth Charge to my credit card The first year membership fee includes national and chapter dues. Spouse’s Date of Birth (if applicable) Phone Number

Credit Card Information: Card type: MasterCard Discover

VISA AMEX

Recruiter’s Membership and Chapter Number

Card No. ___________________________________________ (MM)

(YY)

Expiration Date ________________ Name on Card (Print) NARFE | MARCH 2012

MAIL TO:

NARFE Member Records 606 N. Washington St. Alexandria, VA 22314-1914 Fax: 703-838-7783

1Q 21

Managing Money

Beware of Self-Directed IRAs By Mark A. Keen, CFP®

anks and brokerage firms typically restrict their individual retirement account (IRA) customers to traditional assets, such as stocks, bonds, mutual funds and certificates of deposit. But as IRA investors grow tired of the stock market volatility and low interest rates, many are turning to IRA custodians offering so-called “self-directed IRAs” to invest in alternative assets, such as promissory notes, tax lien certificates, private placement securities and real estate. Self-directed IRAs can certainly provide investors with an opportunity to diversify their portfolios, but they also can expose investors to unexpected tax consequences and even fraudulent investments. In fact, the Securities and Exchange Commission recently issued a formal warning to alert investors about the growing number of fraudulent schemes targeting self-directed IRAs. Although a fraudster may insinuate that an IRA custodian has reviewed and performed some due diligence on an investment, it’s important to note that most self-directed IRA custodians will not evaluate the merits of the investments held in their customers’ IRAs. In fact, the IRA custodians will state this fact directly in their IRA custodial agreements. According to IRA expert Ed Slott, IRA owners should view their self-directed IRA custodian as nothing more than a record keeper. Bottom line: Self-directed IRA owners must protect themselves. Even if a self-directed IRA owner avoids fraudulent investments, he or she still faces other challenges and consequences (ranging from inconvenient to disastrous) if the investor uses IRA

funds to purchase alternative investments. For example, there are a variety of transactions prohibited by the Internal Revenue Service (IRS). And because self-directed IRA investors have the ability to buy a wide range of investments, such as closely held companies and real estate (the IRS prohibits IRA owners from investing in their own business or buying real estate in an IRA for personal use), there is a risk of making a prohibited transaction. The penalty for violating the prohibited transaction rule is severe. The entire IRA would be considered fully distributed, resulting in income taxes owed on the entire value (plus a 10 percent penalty if under age 59-1/2), regardless of the amount of the prohibited transaction. Perhaps one of the more common alternative assets held in a self-directed IRA is real estate. Although real estate is a fairly ordinary asset to own, complex IRS rules may present challenges when it’s held in an IRA. In addition, investors need to understand that certain tax advantages are lost when real estate is bought within an IRA. For example, the ability to deduct depreciation is lost when real estate is held in an IRA. Another example is the tax treatment of gain on a sold property. When an investment property owned outside of an IRA is sold, the gain would be taxed at the long-term capital gains tax rate (assuming the property was held for at least one year), which currently

tops out at 15 percent (the long-term capital gains tax rate will increase to 20 percent in 2013). While it is true that no taxes are due when property is sold within an IRA, the funds must eventually be distributed. And when they are, they will be taxed at ordinary income rates, which currently top out at 35 percent (the top ordinary tax rate will rise to 39.6 percent in 2013). Furthermore, when real estate is held outside of an IRA, and the owner of the property dies, the heirs receive a “stepup” in the tax basis of the property. The stepup-in-basis rule effectively eliminates any capital gains tax on the appreciation prior to death. In comparison, an IRA receives no step-up in basis, so any appreciation prior to death would be fully taxable when the IRA proceeds are distributed. When real estate is owned within an IRA, the IRS requires that all related expenses be paid for with funds from the IRA – not with outside funds. Otherwise, the IRS says that you are making an additional contribution, which may put you in violation of IRS rules. So, either the property must be generating enough cash flow to cover the expenses, or the IRA must have sufficient liquidity to cover all related expenses, including annual maintenance costs and real estate taxes. Illiquid alternative investments also may present several challenges when an IRA owner is required to take minimum distributions. For an IRA owner,

A GROWING number of fraudulent schemes are targeting self-directed IRAs.

MARCH 2012 | NARFE

Co N nt o ra ct

st ne Be Pho 12 ll 20 Ce for

Finally, a cell phone that’s… a phone with rates as low as $3.75 per week!

Mark A. Keen, CFP®, is president and owner of Bennett Financial Advisors, 3600 Chain Bridge Rd., Fairfax,VA, and an investment adviser representative and registered principal of The Strategic Financial Alliance, Inc. (SFA). Securities and advisory services are offered through SFA. E-mail: mkeen@tributaryadvisors.com. NARFE | MARCH 2012

“Well, I finally did it. I finally decided to enter the digital age and get a cell phone. My kids have been bugging me, my book group made fun of me, and the last straw was when my car broke down, and I was stuck by the highway for an hour before someone stopped to help. But when I went to the cell phone store, I almost changed my mind. The phones are so small I can’t see the numbers, much less push the right one. They all have cameras, computers and a “global-positioning” something or other that’s supposed to spot me from space. Goodness, all I want to do is to be able to talk to my grandkids! The people at the store weren’t much help. They couldn’t understand why someone wouldn’t want a phone the size of a postage stamp. And the rate plans! They were complicated, confusing, and expensive…and the contract lasted for two years! I’d almost given up until a friend told me about her new Jitterbug® phone. Now, I have the convenience and safety of being able to stay in touch…with a phone I can actually use.” Sometimes I think the people who designed this phone and the rate plans had me in mind. The phone fits easily in my pocket, and it flips open to reach from my mouth to my ear. The display is large and backlit, so I can actually see who is calling. With a push of a button I can amplify the volume, and if I don’t know a number, I can simply push “0” for a friendly, helpful operator that will look it up and even dial it for me. The Jitterbug also reduces background noise, making the sound loud and clear. There’s even a dial tone, so I know the phone is ready to use.

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required minimum distributions (RMDs) start at age 70-1/2; and, for someone inheriting an IRA, RMDs start the year following the year in which the IRA owner dies. RMDs are calculated based on the prior year’s ending value, so if an IRA holds an illiquid investment, such as real estate, a valuation must be performed every year. As we just learned, all related expenses must be paid for by the IRA, so the IRA must have enough cash to pay for the valuation. That may not be a big deal, but there must be enough liquidity to cover the RMD each year. One of the benefits of an IRA is that no taxes are paid on the earnings an investment makes – taxes are paid when the money is pulled out of the IRA. However, certain alternative investments may generate something called unrelated business taxable income, or UBTI, which could cause an IRA owner to pay taxes on part of an investment’s earnings, even if the funds remain in the IRA. One such investment vehicle is the master limited partnership (MLP), which trades on stock exchanges and is viewed by many as corporate stock. However, MLPs are partnership units and are subject to different tax rules. A self-directed IRA can be a great tool for diversifying your investment portfolio. If you’re interested in using IRA money to invest in alternative investments, do your research, consider all options and consult with a tax adviser prior to making an investment.

IMPORTANT CONSUMER INFORMATION: Jitterbug is owned by GreatCall, Inc. Your invoices will come from GreatCall. All rate plans and services require the purchase of a Jitterbug phone and a one-time set up fee of $35. Coverage and service is not available everywhere. Other charges and restrictions may apply. Screen images simulated. There are no additional fees to call Jitterbug’s 24-hour U.S. Based Customer Service. However, for calls to an Operator in which a service is completed, minutes will be deducted from your monthly balance equal to the length of the call and any call connected by the Operator, plus an additional 5 minutes. Monthly rate plans do not include government taxes or assessment surcharges. Prices and fees subject to change. 1We will refund the full price of the Jitterbug phone if it is returned within 30 days of purchase in like-new condition. We will also refund your first monthly service charge if you have less than 30 minutes of usage. If you have more than 30 minutes of usage, a per minute charge of 35 cents will apply for each minute over 30 minutes. The activation fee and shipping charges are not refundable. Jitterbug is a registered trademark of GreatCall, Inc. Samsung is a registered trademark of Samsung Electronics America, Inc. and/or its related entities. Copyright © 2011 GreatCall, Inc. Copyright © 2011 by firstSTREET for Boomers and Beyond, Inc. All rights reserved.

LiveWell

Taking Charge of Health Decisions By Marilyn S. Radke, M.D.

evere illness or a change in mental condition can prevent someone from making decisions about how much or how little medical treatment to have. It is important, then, for adults to make their wishes known in advance. Advance directives are legal documents that state the treatment or care a person wishes to receive or not to receive if he or she becomes unable to make medical decisions, such as being unconscious or in a coma. Advance directives can be changed as a person’s situation changes. Even after advance directives have been signed, an individual can change his or her mind at any time and modify the documents. Living wills and durable power of attorney for health care are types of advance directives. A living will is a set of instructions stating a person’s wishes about medical care intended to sustain life. These instructions are used if the individual becomes terminally ill, incapacitated, or unable to communicate or make decisions. Everyone has the right to accept or refuse medical treatment. A living will protects the person’s rights and removes the burden of making medical decisions from family, friends and physicians. Decisions regarding the following types of life-sustaining care are considered when making a living will: • The use of life-sustaining equip-

ment, such as kidney dialysis machines and breathing machines (ventilators and respirators); • “Do not resuscitate” orders, which are instructions not to use cardiopulmonary resuscitation (CPR) if breathing or the heartbeat stops; • Artificial hydration and nutrition (tube feeding); • Withholding of food and fluids (liquids);

copies of a living will, place the original in a safe and accessible place, and give copies to the person’s physician, hospital, assisted-living facility (if applicable) and next of kin. Some individuals also may want to keep a card in their wallets showing that they have a living will and where it can be found. A health care proxy is someone who is appointed to make medical decisions for a person who is unable to

TYPES OF life-sustaining care considered when making a living will include instructions not to use CPR if breathing or the heartbeat stops. • Palliative care (symptom management to improve the quality of life); and • Organ and tissue donation. A decision not to receive aggressive medical treatment is different from a decision to withhold all medical care. Someone can still receive palliative care, which includes antibiotics (drugs used to treat infections caused by bacteria and other microorganisms), nutrition, pain medication, radiation therapy (the use of high-energy radiation to kill cancer cells and shrink tumors) and other interventions when the goal of treatment becomes comfort rather than cure. A person can change his or her mind and ask to resume more aggressive treatment. A person’s living will can be modified to show changes in the type of treatment the individual wants to receive. Most states require that a living will be witnessed. It is advisable to make

make his or her own medical decisions. Usually, the person asks someone he or she knows well and trusts to be the proxy, and to represent the person’s preferences when he or she can no longer do so. The proxy may have to use his or her own judgment to make a medical decision in a situation for which the person’s wishes are not known.

To Learn More

or more information on advance directives,write to the National Cancer Institute, NCI Office of Communications and Education, Public Inquiries Office,6116 Executive Boulevard,Suite 300,Bethesda, MD 20892-8322; or call 800-4226237; or visit the website at www.cancer.gov.

MARCH 2012 | NARFE

va G REE lue IF da T t$ 35

Marilyn S. Radke, M.D., is board certified in preventive medicine and practices in Atlanta, GA.

NARFE Is on Facebook “Like” our page on Facebook today! After logging in to Facebook, search for“NARFE National Headquarters” and click “Like.” Check out the latest posts and comments.

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The durable power of attorney for health care is the legal document that names a person’s health care proxy. The durable power of attorney is signed, dated, witnessed, notarized, copied, distributed and placed in the person’s medical record. Although a lawyer is not needed to create advance directives, it is important to be aware that each state has its own laws for making advance directives. Because the laws can differ in important details, special care needs to be taken to comply with the laws of the state in which a person lives or is treated. A living will or durable power of attorney signed in one state may not be recognized in another state. The correct forms can be obtained from health care providers, legal offices, offices on aging and state health departments. Discuss the types of life-sustaining care you wish to receive or not to receive with your loved ones. Take charge of your future health care decisions by creating a living will and a durable power of attorney for health care. Let advance directives communicate your wishes to family, friends and health care providers even if you become unable to do so. .

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Alzheimer’s Update

Updates and Convention Fundraiser By Barb L. Pretzer

continue to get inquiries from NARFE members who have received a solicitation in the mail from “Alzheimer’s Disease Research, 22512 Gateway Center Drive, P.O. Box 950, Clarksburg, MD 20871.” It could very easily be misunderstood that this is part of our effort with the Alzheimer’s Association because of the similar name, but it is not. It does not contain the Alzheimer’s Association logo or any reference to the Alzheimer’s Association, although it does quote statistics from the Alzheimer’s Association’s 2011 Alzheimer’s Disease Facts and Figures. I think that some of our members may NARFE members contributed for Alzheimer?s research:

$10 Million Fund

$9,509,434* *Total as of December 31, 2011 100% of all contributed funds go to Alzheimer’s research. If you have any questions, write to: National Committee Chairman Barb L. Pretzer, 4817 Rockridge Ct. Manhattan, KS 66503 Your charitable contribution is tax-deductible to the fullest extent allowed by law. Write your chapter number on check; make it payable to:

have contributed to this foundation, thinking it was the NARFE-Alzheimer’s Research Fund, and are now receiving solicitation mailings. Let me remind you that our members, when identified as NARFE members, will not get solicitations from the Alzheimer’s Association. The Alzheimer’s Association does not have access to our membership roster. Members are identified as belonging to NARFE when they use the magazine coupon or the online credit card process (www.alz.org/narfe), or by going through their chapter and federation coordinators. If you are receiving solicitations from the Alzheimer’s Association based in Chicago, call Lauren Fritz at 312-335-5828 and ask to have your name marked as a NARFE member so you won’t receive future mailings. At last September’s annual meeting of the NARFE-Alzheimer’s National Committee in Chicago, committee members voted to hold another cashonly raffle at the 2012 National Convention in Reno-Sparks, NV, instead of

a gift raffle, which has been conducted in the past. The raffle distribution will be as follows: 50 percent of the total amount collected will go to the NARFEAlzheimer’s Research Fund. The remaining 50 percent will be divided among three winning ticketholders: 25 percent of the total will go to the firstplace ticketholder; the second-place ticketholder will receive 15 percent of the total; and the third-place ticketholder will receive 10 percent. The cash-only raffle at the 2010 National Convention was very successful, with more than $7,300 collected. It is the committee’s hope that this raffle will again make it easier on everyone, and that the cash-prize incentive will result in higher ticket sales and a larger donation for Alzheimer’s research – which is, after all, what it’s all about.

Barb L. Pretzer is chairman of the NARFE-Alzheimer’s National Committee. E-mail: bpretzer@ksu.edu.

SUPPORT ALZHEIMER’S RESEARCH Enclosed is my NARFE-Alzheimer’s contribution: $ ___________. Every cent that is contributed is used for research. Please circle:

Mr.

Mrs.

Miss

Ms.

Name ______________________________________________________________

Address ____________________________________________________________ City_______________________________ State________ZIP _____________ Chapter number ____________________ Credit Card Information: ❑ Visa

❑ MasterCard ❑ Discover ❑ AMEX

Card Number:________________________________________________________

3-Digit Security _ Code: NARFE-Alzheimer’s Research and mail to:Expiration Date:________(mm)/_________(yy) Alzheimer?s Association Name on Card: (print) ________________________________________________ 225 N. Michigan Ave., 17th Floor Signature: _______________________________ _______ Date: _______________ Chicago, IL 60601-7633

MARCH 2012 | NARFE

Questions & Answers NOTE: The following Questions & Answers were compiled by Retirement Benefits Service Department staff. These are real questions received by the Department and real answers, based on the members’ personal circumstances. The answers are not universal and may include information that is relevant to the correspondent’s particular situation. NARFE does not provide legal advice or assistance, does not provide financial planning advice or assistance, and does not provide tax advice or assistance. For legal, financial planning or tax advice/assistance, NARFE recommends members contact an attorney, financial planner or certified public accountant/tax adviser.

RETIREES REVOKE SURVIVOR’S BENEFITS? QUESTION:I retired over a year ago and am paying for survivor’s benefits for my spouse.My wife and I have decided that she doesn’t need full survivor’s benefits if I predecease her. I realize that I have to obtain her consent to decrease any survivor’s benefit for her, and she has agreed to sign the consent.How do I get this changed? Response: A retiree can revoke or change a survivor’s election if, not later than 30 days after the date of the first regular monthly payment, he or she files a new written election with the Office of Personnel Management. After the 30-day period following the date of the retiree’s first regular monthly payment has passed, the retiree cannot decrease his or her survivor’s election. It is too late to make this change. NARFE | MARCH 2012

FEGLI BENEFICIARY QUESTION: I am the beneficiary under my spouse’s Federal Employees’ Group Life Insurance. We recently separated. Can he name someone else as beneficiary, or am I protected since we are not yet divorced? Response: A retiree or employee may change his or her designation of beneficiary form at any time. If your spouse submits a beneficiary form designating someone other than you to receive this money, then the person(s) he designates will receive the money. You aren’t protected just because you are his spouse.

TSP 1 QUESTION: I am retired and would like to withdraw all or part of my Thrift Savings Plan (TSP) account.Do I have to obtain my spouse’s consent? Response: If you are married, the law grants your spouse certain rights regarding your TSP account, as described in the Federal Employees’ Retirement System Act of 1986. These rights vary depending on: • Your retirement system — Federal Employees Retirement System (FERS), Civil Service Retirement System (CSRS) or uniformed services; and • Whether you choose a partial or a full withdrawal of your account. Spouses’ rights apply even if you are separated from, but still married to, your spouse. Partial Withdrawals: If you are a married FERS or uniformed services participant, and you are making a partial withdrawal, your spouse must give written consent on your withdrawal form, regardless of your account balance or the amount of your withdrawal. Your spouse’s signature must be notarized.

If you are a married CSRS participant, and you are making a partial withdrawal, the TSP must notify your spouse in writing, regardless of your account balance or the amount of your withdrawal. Full Withdrawals: If you are a married FERS or uniformed services participant with an account balance of more than $3,500, and you are making a full withdrawal, your spouse is entitled by law to a joint life annuity with a 50 percent survivor’s benefit. If you choose any other withdrawal option or combination of options whereby your entire account balance is not used to purchase this particular type of annuity, your spouse must sign the statement on your withdrawal form waiving his or her right to that annuity. Your spouse’s signature must be notarized. If you are a married CSRS participant with an account balance of more than $3,500, and you are making a full withdrawal, the TSP must notify your spouse in writing of your withdrawal election.

QA &

TSP 2

QUESTION: I am retired and will soon be turning age 70-1/2. I know that I have to begin receiving a portion of my Thrift Savings Plan (TSP) money. How does this work?

Response: The Internal Revenue Code requires that you receive a portion of your TSP account beginning in the calendar year you turn age 70-1/2 and are separated from service. The portion that you are required to take is called a required minimum distribution (RMD). The TSP calculates RMDs based on your account balance and your age, using the Internal Revenue Service (IRS) Uniform Lifetime Table.

Questions & Answers If you do not withdraw your account balance or begin receiving payments from your account in the year you turn age 70-1/2, the TSP must make the required distribution to you by April 1 of the following year. If you separate from federal service after age 70-1/2, your account would immediately be subject to the RMD. If you are already receiving a series of monthly payments from your TSP account when you turn age 70-1/2, your monthly payments would be used to satisfy the RMD. If the total amount of your monthly payment does not satisfy the requirement, the TSP would issue a supplemental payment for the remaining amount in December. Your RMD cannot be transferred or rolled over into another individual retirement account (IRA) or eligible employer plan. If you withdraw your ac-

count in a single payment or monthly payments in a year during which the RMD applies, you cannot transfer the entire payment or payments to your IRA or eligible employer plan. Instead, before transferring any money, the TSP would calculate your RMD and mail it directly to you (or, if applicable, to the savings or checking account designated to receive your direct deposit). Call the TSP customer service office for assistance at 877-968-3778.

ACTIVE EMPLOYEES SS CREDITS QUESTION:I have 24 quarters of Social Security. Would it be possible to buy 16 more credits so that I will have the required 40 credits for Social Se-

curity eligibility? If not,I will transfer to the Federal Employees Retirement System (FERS) to gain the credits. Response: The Social Security Administration does not allow people to buy credits. The individual must be working and earning wages that are subject to Social Security taxes. You must earn $1,130 in 2012 to earn one credit toward establishing eligibility. Currently, there is no way for an employee who is still working and covered by the Civil Service Retirement System to switch to FERS. If you were to separate from federal employment and become a rehired employee in the federal government after a break in service of three days or more, you could switch to FERS.

RE-EMPLOYMENT 1 QUESTION: I am planning to take

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NARFE SERVICE OFFICERS are available to answer questions and to assist in early retirement and get a job in the private sector. Would this affect my federal annuity? Response: Individuals who take voluntary early retirement are not subject to any reductions in their annuities as a result of nonfederal re-employment. However, if you are covered under the Federal Employees Retirement System (FERS) and receive a FERS annuity supplement, your supplement could be reduced or eliminated. FERS supplements are subject to the Social Security earnings test, which is $14,640 for 2012. The Office of Personnel Management would deduct $1 from your supplement benefits for each $2 earned over $14,640.

RE-EMPLOYMENT 2 QUESTION: I will be taking an early out.If I return to work for the federal

NARFE | MARCH 2012

helping with a variety of benefit matters. Check your chapter newsletter for the name and phone number of your service officer. Call NARFE toll-free at

800-456-8410 for the nearest service officer. NARFE Service Centers are also available in some areas. Use the Service Center listings on the NARFE website, www.narfe.org. government,would this affect my federal annuity? Response: You would be considered a reemployed annuitant when you return to work for the federal government. This means that your annuity would continue, but your salary would be offset by the amount of your annuity, unless the employing agency grants a waiver to the offset of your annuity. If you return to work without the waiver and work full time for at least one year, you could apply for a supplemental annuity. If you work full time for at least five years, you

could apply for a supplemental or redetermined annuity. If you return to a position for which a waiver of the offset to your annuity was granted, then you would be entitled to your full salary and your full annuity. You would not be entitled to any additional annuity. Your human resources office will tell you whether the waiver is applicable.

PART-TIME SERVICE QUESTION: I plan to retire soon. During the last five years of federal

Questions & Answers

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EARLY OUT & FEHBP QUESTION: If a Federal Employees Retirement System (FERS) employee retires at the minimum retirement age (MRA) + 10 and waits until age 62 to begin drawing his or her annuity,can the retiree reinstate his or her benefits under the Federal Employees Health Benefits Program (FEHBP) at that time? If a FERS employee resigns with 10 years of service but not at the MRA and begins drawing his or her annuity at the MRA, can he or she reinstate health benefits? Can FERS employees receive a special annuity supplement when they retire under an early out, even if they haven’t reached their MRA? Response: If an employee is eligible for an immediate retirement (meets the MRA and has at least 10 years of service) for an MRA + 10 but chooses to delay the annuity until a later date, he or she may reinstate FEHBP coverage (if eligible to carry it into retirement) when the retirement benefit begins. If the employee has 10 years of service but is not at least at his or her MRA, the FEHBP coverage may not be reinstated when he or she begins to receive the deferred annuity benefit. There is no reduction for age if the employee retires under FERS on an early out unless there is a Civil Service MARCH 2012 | NARFE

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FEHBP & SURVIVOR’S BENEFITS QUESTION: I changed to self-only coverage under the Federal Employees Health Benefits Program (FEHBP) during Open Season.My spouse works in private industry and has his own health insurance. We do not want to elect survivor’s benefits for my spouse when I retire.I understand that I must choose a survivor’s benefit to cover my spouse under my FEHBP plan as a retiree. Is this correct? Response: No. You do not need to elect a survivor’s benefit to cover your spouse as a family member on your FEHBP plan. As a retiree, you may add your spouse as a family member during Open Season or outside of Open Season if he loses the coverage for any reason. However, if you want your spouse to continue FEHBP coverage if you predecease him, you must have elected at least a partial survivor’s benefit, and you must have family coverage on the date of your death. You may take FEHBP into retirement if you retire on an immediate retirement and have been covered under the FEHBP for five years immediately preceeding your retirement date.

To obtain an answer to a retirement benefits question, call 703-838-7760 and ask for the Retirement Benefits Service Department; send your question by postal mail to NARFE Headquarters, ATTN: Retirement Benefits; or submit it by email to retbenefits@narfe.org. NARFE | MARCH 2012

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Retirement System (CSRS) component. The CSRS portion of the benefit would be reduced by 1/6 of 1 percent for each full month the retiree is under age 55. Under FERS, a person retiring on an early out is not eligible for the annuity supplement until he or she reaches full retirement age.

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Report From the Regions Active Feds Needed By Betty Lucero-Turner Region VII Regional Vice President blturner2311@aol.com

irst of all, thanks to all of you for continuing your NARFE membership. I would like to take this opportunity to address active federal employees who are NARFE members. We need your help. Many of you have had the chance to learn more about NARFE by visiting our website, reading NARFE magazine and attending chapter meetings. But the fact remains: There are many other federal workers who do not

know about the benefits of NARFE membership. They are not aware that NARFE’s sole mission since 1921 has been to protect the hard-earned benefits of active and retired federal workers. Nationwide, there are about 2.7 million federal workers, yet only about 24,000 belong to NARFE. Our ability to continue to fulfill our mission has everything to do with the size of our membership – this is what determines our effectiveness. Please take time to explain the benefits of belonging to NARFE to your co-workers. Share a copy of NARFE magazine or direct them to our website. There is much a person gets in return for being a NARFE member. Our Legislative Department works

tirelessly to provide a voice on Capitol Hill for federal workers and retirees, helping to shape legislation and promoting NARFE’s agenda. Our Retirement Benefits Service Department provides advice and assistance to federal workers, retirees and their survivors. NARFE magazine is a comprehensive source of legislative analysis and contains useful articles on a variety of topics. NARFE’s website provides timely information exclusively for members. You are in an excellent position to help NARFE strengthen its voice on Capitol Hill by encouraging your co-workers to join NARFE. Be an activist! Encourage them to contact NARFE by visiting www.narfe.org or calling 800-6273394. ■

2011 Recruitment Results During 2011,15,076 new members joined NARFE.Chapters or individual NARFE members recruited 6,285 of these new members. – Jacqueline Johnson-Bryant, Recruitment and Retention Assistant REGION I

REGION V Iowa . . . . . . . . . . . .188 Kansas . . . . . . . . . .175 Minnesota . . . . . . .265 Missouri . . . . . . . . .289 Nebraska . . . . . . . . .76 North Dakota . . . . .52 South Dakota . . . . .104 Total . . . . . . . .1,149

REGION IX Alaska . . . . . . . . . . . .53 Idaho . . . . . . . . . . . .75 Montana . . . . . . . . . .62 Oregon . . . . . . . . . .136 Washington . . . . . .409 Total . . . . . . . . .735

Dist. of Columbia . .169 Delaware . . . . . . . . .54 Maryland . . . . . . .1,164 New Jersey . . . . . .248 Pennsylvania . . . . . .680 Total . . . . . . . .2,315

REGION VIII

REGION X Kentucky . . . . . . . . 186 North Carolina . . . 349 Tennessee . . . . . . . . 186 Virginia . . . . . . . . 3,013 West Virginia . . . . . 102 Total . . . . . . . . 3,836

REGION VII

Illinois . . . . . . . . . . .353 Indiana . . . . . . . . . .208 Michigan . . . . . . . . .233 Ohio . . . . . . . . . . . .359 Wisconsin . . . . . . .182 Total . . . . . . . .1,335

REGION II

California . . . . . . . .933 Guam . . . . . . . . . . . .17 Hawaii . . . . . . . . . .115 Nevada . . . . . . . . . .106 Philippines . . . . . . . . .0 Total . . . . . . . .1,171

Arizona . . . . . . . . .219 Colorado . . . . . . . .346 New Mexico . . . . .147 Utah . . . . . . . . . . . . .63 Wyoming . . . . . . . . .22 Total . . . . . . . . .797

REGION IV

Connecticut . . . . . . .86 Massachusetts . . . .189 Maine . . . . . . . . . . . .52 New Hampshire . . .61 New York . . . . . . ..514 Rhode Island . . . . . . .42 Vermont . . . . . . . . . .31 Total . . . . . . . . .975

REGION III

REGION VI Arkansas . . . . . . . . .136 Louisiana . . . . . . . .130 Oklahoma . . . . . . .190 Panama . . . . . . . . . . . .5 Texas . . . . . . . . . . .619 Total . . . . . . . .1,080

FOREIGN 24

Alabama . . . . . . . . .259 Florida . . . . . . . . . .717 Georgia . . . . . . . . .386 Mississippi . . . . . . .121 Puerto Rico . . . . . . .33 South Carolina . . . .143 Total . . . . . . . . . .1,659

MARCH 2012 | NARFE

NARFE News Former RVP Blaisdell,1938-2011 Passages

ilbert W. Blaisdell Jr., former Region I vice president, died December 22 following a long illness. A resident of Amesbury, MA, Blaisdell resigned as NARFE Region I vice president in NoGilbert vember 2011 because of ill health. He had been elected at the NARFE National Convention in 2010. He retired from the Portsmouth Naval Shipyard as a production controller. He served two years of active duty in the U.S. Army and retired from

the U.S. Army Reserves in 1998 after more than 20 years of service. He also had taught at Whittier Vo-Tech as an oil burner and pipe-fitter instructor for more than 13 years. He is survived by his wife, W. Blaisdell Mary; six children; and numerous grandchildren and great-grandchildren. Augie Stratoti of Nashua, NH, who previously held the Region I post, was selected to serve out Blaisdellâ&#x20AC;&#x2122;s term of office. â&#x2013;

VIRGIL HALTE FORMER GEORGIA FEDERATION PRESIDENT irgil Halte died December 8. He was president of the Georgia Federation from May 2011 until he resigned in September 2011 due to illness. He also had been president of Chapter 643 in Albany. He served 10 years in the Marines and retired after 21 years as a civilian employee at the Marine Corps Logistics Base in Albany.He is survived by his wife, Cheryl; a daughter;and three grandchildren.

2012 FEDERATION CONVENTIONS FEDERATION

CITY

DATES

FEDERATION

CITY

Alaska Arkansas Connecticut Florida Georgia Idaho Illinois Indiana Iowa Kansas Kentucky Maine Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska

Fairbanks Texarkana, TX Cromwell Altamonte Springs Albany Boise Tinley Park Bloomington Storm Lake Salina Hopkinsville Augusta Marlborough East Tawas Mankato Louisville St. Louis Helena Omaha Nashua Santa Fe

April 21-22 May 17-18 June 14 May 8-10 May 2-3 May 16-18 May 16-18 April 10-12 May 9-11 April 22-24 April 10-12 May 2-3 May 10-11 June 5-8 May 22-24 April 27-29 April 19-22 May 22-24 May 6-8 May 15-16 April 19-21

New York N. Carolina N. Dakota Ohio Oklahoma Oregon Panama Pennsylvania Philippines Rhode Island S. Carolina S. Dakota Tennessee Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Canandaigua Cherokee Grand Forks Akron El Reno Canyonville Panama City Breinigsville San Fernando Cranston

New Hamp.

New Mexico

DATES

May 21-22 May 9-11 May 2-4 April 26-27 May 4-5 April 29-May 1 March 17 May 6-9 December 1 June 14 Myrtle Beach April 9-11 Watertown May 14-16 Memphis April 16-17 Salt Lake City May 17-18 Berlin May 17 Richmond April 22-25 Vancouver May 14-16 Morgantown May 21-23 Wisconsin Rapids May 7-9 Cheyenne May 24-25

NOTE: Alabama, Arizona, California, Colorado, Delaware, District of Columbia, Hawaii, Louisiana, Maryland, Nevada, New Jersey, Puerto Rico/VI and Texas do not have conventions this year. NARFE | MARCH 2012

NARFE News NARFE-FEEA Grantee Stories Sought

re you a NARFE member who received an emergency grant from the NARFE-FEEA Disaster Fund in the past three years? The Federal Employee Education and Assistance Fund (FEEA) is looking for recent emergency assistance recipients to share their first-hand accounts of how a little help can make a big difference for active and retired federal employees in need. Contact FEEA at 2012 Scholarship Application tellmystory@feea.org or 202-554-0007 for more information. See p.47

Two New Additions to Wall of Fame

ilver Circle donations totaled $113,968 as of January 15. Donors from October 15, 2011January 15 are listed below with their chapter numbers. The program offers a way for members to give to NARFE beyond the norm. Donors of $25 or more are listed in

WALL OF FAME ($1,000 OR MORE) SUNGLEE K. KIM 1518 HAWAII IN MEMORY OF GAIL A. MARTIN 2065 VA

NARFE magazine and receive a Silver Circle pin. Donors of $1,000 or more

have their names engraved on the Wall of Fame at NARFE Headquarters. A donation in memory of Gail A. Martin, wife of Region X Vice President William F. Martin and an officer in Chapter 2065 in Louisa, VA, gives her Wall of Fame status. Gail Martin died December 23 in a car accident. ■

SILVER CIRCLE ($25 OR MORE) ARIZONA DOROTHY A. LUNN 0321 RUTH SWANSON 1686 CALIFORNIA LOUIS J. JURUS 0004 WILLIAM E. THOMPSON 0021 JOSEPH MICHAEL MAURO 1077 COLORADO JAMES L. ALCORN 1076 FLORIDA CARIES B. BOOKER 1428

IOWA JAMES HUBER 0875 IDAHO GENEVIEVE E. BOGUSLAWSKI 1025 ILLINOIS WAYNE L.WAGGONER 0399 JAMES MILGRIM 1067 MASSACHUSETTS JOANNE M. SULLIVAN 0479 MARYLAND ANN MYERS 1892

MISSOURI RICHARD W. JACKSON 0019 NORTH CAROLINA THOMAS A. MCKEOWN 2211 NORTH DAKOTA JOHN N. CAMERON 0119 RAYNARD G. HERR 1839 NEW JERSEY JOHN E.WADDY 0203 ANGELA MORETTI 0501 ROBERT W. GIBSON 0718

NEW YORK JOSEPH GODFREY 1758 PENNSYLVANIA ANNA R. DICKMAN 1371 FRANK C. DICKMAN 1371 TEXAS JEAN A. COX 0228 VIRGINIA WILLIAM A.WILLIS 1665 P. A. ALBAUGH 2358 WASHINGTON ARTHUR N. GILMORE 0181

Silver Circle Contribution Form

Yes!

I want to be a member of the NARFE Silver Circle. Enclosed is my Silver Circle contribution of $ _____

• For a contribution of $25 or more, you will receive a Silver Circle pin, and your name will be listed in NARFE magazine with other contributors. • For a contribution of $1,000 or more, your name will be placed on the “Wall of Fame” at NARFE Headquarters.

ID # ____________________________________________________________________ (ID # may be found on your NARFE magazine label or your NARFE membership card)

Name ____________________________________________________________________ Address ___________________________________________________________________ City ____________________________________ State ___________ ZIP _____________ J My check is enclosed (please make check payable to NARFE Silver Circle) Silver Circle contributions are not deductible for federal income tax purposes. J Please charge my credit card Card type J Mastercard J Visa J Discover J AMEX J Installment Plan Card # _________________________________________________ Wall of Fame 12-month installment plan Expiration Date_____________________________________________ Name __________________________________________________ Signature ___________________________________________ Date ___________________

Clip this contribution form and mail to: NARFE Silver Circle, NARFE, 606 N. Washington St., Alexandria, VA 22314

MARCH 2012 | NARFE

Out & AW bout ith the Chapters TOWN HALL MEETING ATTENDANCE. Members of Chapter 79 in Eugene, OR, talk with U.S. Sen. Ron Wyden after a recent Wyden Town Hall Meeting. From left: Ruthann Couch, Lue Berg and Wyden.

Visit our online gallery at www.narfe.org. Click on NARFE magazine.

CONGRESSIONAL SPEAKER. U.S. Rep. Joe L. Barton, left, recently spoke at a meeting of Chapter 1191 in Ellis-Navarro,TX. At right is Ralph Nelson, chapter president.

FEEDING THE HUNGRY. Chapter 1236 in Eastern Panhandle-Martinsburg, WV, recently hosted Jennifer Yeater, left, coordinator of the Berkeley County BackPack Program.The program provides food for children in nonschool times by discreetly distributing the food in backpacks to children on the last day of school before a weekend or holiday. Chapter President Steve Sosson presents nonperishable food donated by members.

To submit a photo: E-mail it to rl@narfe.org or send it by postal mail to NARFE Headquarters, ATTN: Out & About.

NARFE-FEEA PROGRAM FUND CONTRIBUTION FORM

YES! I would like to help with my contribution. Please check appropriate box(es). To make credit-card contributions,call 800-338-0755. Scholarships are available to children and grandchildren of federal civilian retirees and current federal employees who are NARFE members.

❏ ❏

NARFE-FEEA Disaster Fund NARFE-FEEA Scholarship Fund

Amount $ Amount $

Name

NARFE | MARCH 2012

Make check payable to: NARFE-FEEA Disaster Fund or NARFE-FEEA Scholarship Fund. Please mail coupon and check to:

FEEA

Address City

YOUR CHARITABLE CONTRIBUTION IS TAX DEDUCTIBLE TO THE FULLEST EXTENT ALLOWED BY LAW.

State

ZIP

3333 S. Wadsworth Blvd., Suite 300 Lakewood, CO 80227

NARFE: Our Best Bet for the Future

32nd National Convention RENO-SPARKS, NV AUG 26-30, 2012

Convention to FeatureTraining

raining will be an integral part of the 2012 National Convention. In addition to the traditional delegate orientation session, several other optional training opportunities are planned: • “Lunch and Learn” sessions are planned for Wednesday and Thursday of convention week. The sessions will run from 12:30 to 1:30 p.m. each day when the convention business session is in recess. Delegates must register for the sessions when they arrive at the convention registration area. Tickets for each session cost $10 and include a box lunch. Topics of the sessions will be announced soon on the NARFE website

and in NARFE magazine. • Service officer training also will be offered on Monday evening of conven-

Bylaws Revision Proposal

n pages 38-46 of this issue,we publish the full text of the“NARFE Proposed Bylaws and Standing Rules,” which will be considered at the National Convention. Members should review them and forward comments by March 31 to the Bylaws Revision Committee at brc@narfe.org. This will allow the committee time to consider the comments and incorporate appropriate changes into the documents that will be presented at the convention. “The more comments that are provided at this time,the fewer there will be arising during consideration of the documents at the National Convention,” noted NARFE Parliamentarian Paul Lamb. The proposal also is available at www.narfe.org (click on the National Convention logo).

CONVENTION DEADLINES The following deadlines have been established for the 2012 Convention.Details on all of these deadlines and other convention information are available at www.narfe.org. Sign in as a member and click on the 2012 Convention logo. Candidate Statements: March 1 for May issue of NARFE magazine, April 1 for June issue,May 1 for July issue Resolutions: No later than May 15 Delegate Form: June 30 Proxy Form: August 11 Registration: Postmarked by August 2

tion week by David Snell, director of NARFE’s Retirement Benefits Service Department.

HOTEL RESERVATIONS Hotel reservations may be made by phone with the convention hotel (to get the NARFE rate,you must mention the NARFE Convention) or online at www.januggetsecure.com/jump/1190/.

JOHN ASCUAGA’S NUGGET CASINO RESORT 1100 Nugget Ave. Sparks, NV 89431 800-648-1177 - www.janugget.com HOTEL RATE: $95 single/double + 13.5% county tax. Triple and quad occupancy rates are an additional $10 per person over the quoted rate. Rates apply three days before and three days after the arrival and departure dates, based on availability. PARKING: Valet and self-parking;rate included in the $3 per room per night resort fee. RESERVATION CUTOFF DATE: July 20 CHECK-IN: 3 p.m. CHECK-OUT: 11a.m.

MARCH 2012 | NARFE

NARFE 2012 NATIONAL CONVENTION PREREGISTRATION FORM NARFE ID #:

32ND NATIONAL CONVENTION August 26-30, 2012 PLEASE CHECK: ■ (Guest) Member ■ (Guest) Nonmember

Name:

■ Delegate* ■ Delegate-at-Large* ■ Alternate*

*NOTE: This is NOT a voter registration form. Voter registration is confirmed by your chapter on Form C/12-2.

Address:

Mail Preregistration Form to: NARFE, Treasurer’s Office 606 N. Washington St. Alexandria, VA 22314-1914

Name for badge: Chapter #:

■ A nonrefundable fee of $65 (payable to NARFE) must accompany this form. ■ Onsite registration fee will be $80 in Reno-Sparks. ■ Each attendee must complete a separate registration form. ■ Form must be postmarked by August 2, 2012.

Location:

■ Charge to my credit card

Notify in case of emergency:

Card type: ■ MasterCard ■ Visa ■ Discover ■ AMEX

Name:

Card# __________________________________________ Phone Number:

Expiration Date_______ / _______ (mm) / (yy)

Name on card (Print) _______________________________ Signature ________________________ Date __________

Form C/12-4

BANQUET RESERVATION FORM August 30, 2012

32ND NATIONAL CONVENTION August 26-30, 2012 ■ Tables will be assigned on a first-come, first-served basis. Tables seat 10 people. ■ RESERVATIONS LIMITED TO 2,000 PEOPLE. ■ Groups wishing to sit together should submit only one request specifying number of seats desired. Please attach name list. ■ A receipt will be mailed to you by August 2 acknowledging payment and showing your table assignment. ■ All banquet tickets will be held for pickup at the convention registration area at John Ascuaga’s Nugget Casino Resort. ■ BANQUET REFUNDS AVAILABLE ONLY IF RESERVATIONS ARE CANCELLED 72 HOURS PRIOR TO THE BANQUET.

NARFE ID #: Name: Address:

Chapter #: Nonmember Guest: Please reserve _____ tickets at $50 each, total $_____.

■ Charge to my credit card Card type: ■ MasterCard ■ Visa ■ Discover ■ AMEX

Make check payable to NARFE and send to: NARFE, Treasurer’s Office 606 N. Washington St. Alexandria, VA 22314-1914

Card# __________________________________________ Expiration Date_______ / _______ (mm) / (yy)

Name on card (Print) _______________________________ Signature ________________________ Date __________

Form C/12-16

NARFE Proposed Bylaws and Standing Rules CHANGES FROM 2010 BYLAWS AND STANDING RULES The 2010 Convention authorized, via Resolution 10-42, a committee “to examine the National Bylaws; to prepare a revised set of bylaws; to submit the revised set of bylaws for action by the National Convention in 2012.” While the National Executive Board (NEB) appointed the members, it is not an NEB committee nor does it come under the supervision of the NEB. The Bylaws Revision Committee (BRC) aimed to streamline and modernize the 2010 bylaws to strengthen NARFE. Reorganization was needed for clarification and to bring the bylaws into a more conventional configuration. The major change was to move much of the procedural portions of the 2010 bylaws into the standing rules. The following list highlights some of the changes, but it is not all-inclusive. A. Membership was brought into one location,and members were classed as voting and nonvoting.Please note that while the committee did note discrepancies between the various forms regarding membership,the committee has no authority to change the forms,only the bylaws and standing rules. B. Details of national officer duties were moved to the standing rules. C. Details of the National Executive Board duties were moved to the standing NOTE: The following document presents the rules. proposed bylaws and accompanying D. The three articles on chapters,federations and headquarters were merged into standing rules for NARFE side by side to one article to make NARFE’s organizational structure clear. show you how the two work together and E. There is no mention of constitutions for the formation of new chapters as complement each other. The bylaws, the leftconstitutions are no longer required. hand column, provide the basic framework F. Details on national convention voting were moved to the standing rules as they for the organization; the standing rules, the are primarily procedural. right-hand column, spell out the procedures G. Specific steps for amendments were moved to the standing rules as they are and details that implement that framework. If primarily procedural. a particular section in the bylaws does not H. The newWashington,DC,law concerning nonprofit organizations requires an need an accompanying standing rule, there annual meeting of members,which has been included,without specifying the will be a blank space in the right-hand where and how. This annual meeting in non-convention years,for example, column; if it does need further specification might be part of the NARFE LegislativeTraining Conference. for implementation, the rule(s) that provide I. The law firm that looked at this draft recommended we include a new bylaws Article concerning indemnification and insurance,which we have done. that are placed as close as possible in the right-hand column. Although this presentaAll suggestions for changing the 2010 bylaws were considered by the committee, but tion is designed to show how the two docuthe committee chose to retain most of current policy and is recommending no major ments work together, at the convention they changes in the organization, preferring to allow the membership at a future convenwill be discussed separately. tion to determine the direction NARFE should go. The proposed bylaws and standing rules are presented below side by side so that it is easier to see how they work together. At the convention, each document will be considered separately. This draft is not the final version; what you receive in your convention book, the “previous notice,” is the final draft that will be up for discussion and vote at the convention. Because we wish to ensure that member concerns are taken into account, there may be changes between this version, which is still up for comment, and the final version in the convention book. Member comments must be received no later than March 31 so that the “previous notice” can be completed and published. Email comments to brc@narfe.org. – MaryWilliams,Bylaws Revision Committee Chair

NARFE PROPOSED BYLAWS AND STANDING RULES ARTICLE I Membership and Dues

RULE I Membership and Dues

Section 1. Membership Eligibility Active employees and former and retired employees who are eligible to receive annuities and their current and former spouses who are legally entitled to receive federal survivor annuities from any civilian retirement program of any United States Government agency shall be eligible for membership in the Association, without regard to race, color, creed, national origin, sex, sexual orientation, age or disability. Upon receiving applications and dues from eligible employees and spouses, the Association shall admit them as members. Section 2. Membership Classes and Categories A. Voting Members. This class consists of members in the following categories who shall have all privileges of membership including the rights to vote and to hold office: 1. Regular Members who shall pay both national and chapter dues of record; 2. Life Members who have paid present and future national dues in a lump sum, and who shall pay chapter dues of record; 3. Honorary Members who were recognized before October 2008 for having reached 85 years of age and at least 20 years of NARFE membership, and who shall not pay national dues. They may also be exempt from chapter dues if authorized by the chapter’s bylaws. No additional members may be so designated;

Section I. Membership Classes and Categories

A. A Life Member who fails to pay chapter dues faces suspension of chapter membership rights and privileges. B. A member may be recognized as a Distinguished Member upon request and certification by the chapter to national headquarters that the criteria have been met. In addition, any Honorary Member may request recognition as a Distinguished Member upon written request to the national headquarters and resuming payment of national dues.

MARCH 2012 | NARFE

ARTICLE I Membership and Dues

RULE I Membership and Dues

4. Distinguished Members who have been recognized since October 2008 for having reached 85 years of age and at least 20 years of NARFE membership, and who shall pay national dues. They shall pay chapter dues unless exempted by the chapter’s bylaws; and 5. Associate Members who shall pay national dues, the dues of their home chapter and dues of any other chapter with which they may choose to affiliate. B. Non-Voting Members. This class consists of members in the following categories who shall have all privileges of membership except the right to vote and to hold office: 1. National Only Members who shall pay national dues through any established system, but who chose not to join a chapter or stopped paying chapter dues; 2. National Only Life Members who have paid present and future national dues in a lump sum, but who chose not to join a chapter; and 3. Social Members who, though not eligible to join the Association, may affiliate with chapters if chapter bylaws allow.

C. Associate Members may hold office within the affiliated chapter but cannot be included in the total affiliated chapter membership count for determining representation at national conventions.

D. National Only Members, other than Life Members in this category, shall be permitted to retain that status until their memberships are terminated for failing to pay national dues. If these former members subsequently choose to rejoin the Association, they must become regular members who pay national and chapter dues. As prescribed in Rule I, Section 1.A. above, Life Members who fail to pay chapter dues are the only members who can be added to this category. E. No additional members shall be designated as National Only Life Members.

Section 3. Chapter Membership Requirement All new members are required to belong to both the Association and one of its chapters. Section 2. Membership Recruitment A. In addition to direct recruitment, the Association shall recruit members through chapters. 1. Each member retains the right to belong to any chapter. New members not specifying a chapter to which they will belong shall be assigned to the chapter serving the ZIP code area in which they reside. 2. ZIP codes shall be assigned among the chapters by the presidents of the state federations. B. The NEB may establish incentive programs to benefit member recruitment and retention, such as recruiting rebates and finder’s fees. An incentive program shall not extend beyond two (2) years, unless extended by the NEB after evaluating its effectiveness. C. One-third (1/3) of the membership fee shall be returned to the chapters in lieu of the first year’s chapter dues. Subsequent billings shall be for a combination of the national dues and the dues of the appropriate chapter. D. Only those Active Federal Employees (AFE) and spouses who were recruited under a special multi-year dues rate incentive program now closed will be permitted to renew at those rates as long as the primary member retains AFE status. Section 4. Dues A. National dues shall be forty dollars ($40) for one year, seventy-two dollars ($72) for two years and one hundred two dollars ($102) for three years. For dues withholding, annual dues are $34. B. The NEB may establish a one-time membership fee that includes national dues and chapter rebates for new members. C. Any member whose national dues are in arrears for three (3) months or more shall, after due notice by the Association, be dropped from the rolls, and all rights and privileges granted under the provisions of these bylaws shall cease. D. Ten percent (10%) of the national dues and new membership fees shall be returned to the federations on a monthly basis. E. Chapter dues collected by national headquarters shall be remitted to the chapters on a monthly basis. F. All funds derived from membership fees and dues may be used only to support Association objectives.

Section 3. Dues A. Dues for Life Members shall be as established by the NEB.

B. National headquarters shall provide a monthly accounting to the federation of the number of members for which it is being reimbursed 10% or other funds.

Section 4. Membership Lists and Labels A. All membership and prospective member lists and computer labels in the custody of the Association, federations or chapters shall be treated as confidential. Membership lists or labels shall not be furnished to vendors or contractors without specific NEB approval. B. Any use or disclosure of membership lists or computer labels of members and prospective members is strictly forbidden except for (1) national programs authorized by the NEB; (2) membership

NARFE | MARCH 2012

ARTICLE I Membership and Dues

RULE I Membership and Dues recruitment; (3) chapter and federation bulletins, newspapers or newsletters; or (4) disclosure as may be appropriate in accordance with applicable law. Under no circumstances shall the telephone numbers or email addresses of Association members or potential members be provided to anyone other than Association officials and members. C. Candidates for Association offices shall be entitled to purchase as many sets of address labels as requested as follows: 1. For national offices, only the labels for officers of the federations and chapters; 2. For regional vice president offices, only the labels for the officers of federations and chapters within the region in which they are candidates; 3. For federation offices, only the labels for the officers of the federation and the chapters within the federation in which they are candidates; 4. For chapter offices, only the labels for the officers and members of the chapter concerned. D. Candidates shall reimburse the Association for such lists and labels on the same cost basis and terms as the Association may be offering lists and labels to the chapters and federations. Section 5. National Publication The Association shall periodically publish an official magazine or newsletter. A subscription to the publication shall be a right of membership for all members.

ARTICLE II Officers and Their Duties

RULE II Officers and Their Duties

Section 1. National Officers A. Officers: The officers of the Association shall be a president, a vice president, a secretary and a treasurer. B. Eligibility: Nominees for office shall be members of both the Association and a federation-affiliated chapter. C. Term of Office 1. The officers shall assume office on November 1, following their election by majority vote of the voting members at the biennial national convention. These officers shall serve two-year terms, ending when their successors are elected and assume office. The president shall not serve more than two (2) consecutive terms in that office. 2. No member who has held the office of president or acted as president for more than one (1) year of an unexpired term, shall be elected to the office of president for more than one term. 3. No officer shall simultaneously hold office in any chapter or any federation. D. Vacancies in Office: 1. If there is a vacancy in the office of the president, the vice president shall serve as president until the next election. 2. If there is a vacancy in any other national office, the NEB shall fill such vacancy for the unexpired term. E. Duties: The national officers shall perform the duties prescribed by these bylaws, the standing rules, any directives adopted by the convention and the adopted parliamentary authority. 1. The President shall be the Chief Executive Officer of the Association.

Section 1. National Officers

A. The president shall: 1. Be responsible for the execution of policies and programs under the general direction of the NEB; 2. Assign duties to the national officers and regional vice presidents, subject to approval by the NEB; 3. Hire, promote and terminate Association employees, subject to personnel policies established by the NEB; 4. Appoint qualified persons to such special staff positions designated by the NEB as necessary, at rates of compensation fixed by the NEB; 5. Preside at all national annual meetings, national conventions and all meetings of the NEB;

MARCH 2012 | NARFE

ARTICLE II Officers and Their Duties

2. The Vice President shall: a. Serve as president when the president is unavailable; and b. Perform other duties assigned by the president, the NEB or the convention. 3. The Secretary shall: a. Be responsible for all Association records; and b. Perform such other duties as directed by the president, the NEB or the convention. 4. The Treasurer shall: a. Be responsible for all Association funds; and b. Perform such other duties as directed by the president, the NEB or the convention.

RULE II Officers and Their Duties 6. Appoint members to and select the chair of committees, except the audit committee, deemed necessary by the NEB or the convention; 7. Be an ex officio member of all committees except the audit committee; and 8. Submit to each national convention recommendations for programs for the ensuing term, including estimated costs and sources of income. B. The Vice President shall: 1. Perform the duties of the president in the temporary absence or disability of the president; and 2. Succeed to the office of the president in the event of a vacancy. C. The Secretary shall: 1. Keep true and correct minutes of all NEB meetings and records of all national convention sessions; and 2. Maintain all the books, seals, papers and records of the Association and the bonds of the officers. D. The Treasurer shall: 1. Be responsible for the receipt and deposit of all monies of the Association in a federally insured financial institution(s) designated by the NEB; 2. Pay all orders for payment issued by the president; 3. Secure bond for the treasurer or any other person who acts for the treasurer in such amount as the NEB shall deem sufficient to protect the Association; 4. Ensure that the Association’s dedicated funds, i.e., NARFE-PAC, Life Membership Trust Fund, Joe Woodruff Memorial Building Fund, NARFE Contingency Fund, NARFE Convention Fund, and any other funds so designated by the NEB, shall not be commingled with any other funds or used for collateral for any obligation not specifically authorized in the bylaws; 5. Submit a monthly report of receipts and expenditures to the NEB; 6. Have access to the safe deposit box of the Association when accompanied by another national officer; 7. Prepare an operating and a capital budget to include the current calendar year and the two future years; and 8. Ensure a financial report for the prior calendar year, including a balance sheet, list of investments and the auditor’s recommendations, is published not later than the June issue of the Association’s official publication. Such report shall list separately the salary of each national officer and regional vice president.

Section 2. Regional Vice Presidents A. Officers: There shall be a vice president for each region of the Association. B. Eligibility: Nominees for office shall be members of both the Association and a federation-affiliated chapter within the region. C. Term of Office: 1. The regional vice presidents shall assume office on November 1, following their election at the biennial national convention by a majority of the delegates from their respective regions. The regional vice presidents shall serve two-year terms, ending when their successors are elected and assume office. 2. No regional vice president shall simultaneously hold office in any chapter or any federation. D. Vacancies in Office: 1. If there is a vacancy in the office of regional vice president, the federation presidents of the applicable region shall elect a successor to serve the remainder of the unexpired term. 2. A regional vice president who is unable to attend an NEB meeting shall select a temporary replacement, who shall have voice and vote at that meeting. E. Duties: The regional vice presidents shall perform the duties prescribed by these bylaws, the standing rules, any directives adopted by the convention and the adopted parliamentary authority. They shall: 1. Serve as members of the NEB, representing the concerns of

NARFE | MARCH 2012

ARTICLE II Officers and Their Duties

2. 3. 4. 5. 6.

members in their respective regions and communicating NEB decisions back to the members they represent; Represent national headquarters and assist federation officers in promoting the aims and objectives of the Association; Select a national audit committee consisting of three (3) regional vice presidents to establish criteria for the selection of the auditor and define the scope of the audit; Encourage federation officers and their chapters to participate in legislative activities at the state level, including development of legislative programs; Have the authority to request activity reports and financial statements from each federation president; and Perform such other duties as directed by the convention or by the president or NEB, with concurrence of the majority of the NEB.

ARTICLE III The National Executive Board (NEB)

RULE II Officers and Their Duties

Section 2. Regional Vice Presidents The regional vice presidents shall ensure the audit committee presents a report to the NEB for its consideration.

RULE III The National Executive Board (NEB)

Section I. Composition The NEB of the Association shall be composed of the national officers and the regional vice presidents. Section 2. Authority and Duties A. Authority: The NEB shall: 1. Conduct the business of the Association in accordance with relevant laws and regulations of the District of Columbia, the Articles of Incorporation, the bylaws, the standing rules and by any general affirmation of policy enacted by a convention; 2. Establish and issue policies and procedures in accordance with applicable law and equitable procedures for declaring any national office or regional vice president position vacant; and 3. Be the trustee for and have custody of all real and personal property owned by the Association. B. Duties: The NEB shall: 1. Establish and modify the national regions of the Association; 2. Establish personnel policies for the hiring, promotion and termination of Association employees; 3. Approve the appointment and fix the compensation of special staff as may be required; 4. Determine and direct the manner and placement of investments of the Association funds; 5. Order annual or more frequent audits to be made by a certified public accountant recommended by the audit committee; 6. Create such standing and special committees as it may deem necessary to further the work of the Association, other than the audit committee, provided for in Article II, Section 2.E.3; and 7. Perform such other duties as directed by the convention or by the president, with concurrence of the majority of the NEB.

The NEB shall: A. Designate those special staff positions it deems appropriate in the national headquarters, such as a general counsel, a legislative representative and legislative assistants, an editor and managing editor for the monthly publication, an assistant to the treasurer, an assistant to the secretary, a credentialed parliamentarian, etc.; B. Direct the storage of all securities owned by the Association and all other evidence of investment of funds requiring safeguarding in a safe deposit box in a bank or trust company; C. Cancel the charter of any chapter or federation, on thirty (30) days notice, for failure to carry out the requirements and purposes of the charter, bylaws or constitution (if applicable) or for other causes; 1. The charter holder shall be given reasonable opportunity to show cause why such charter should not be canceled. 2. A chapter or federation, upon notification that its charter is canceled, shall provide an accounting of funds to the Association and refund any monies in hand received from the Association. D. Provide criteria and standards of policy guidance to the president. E. Approve the operating and capital budgets of the Association.

Section 3. Meetings A. There shall be at least two (2) meetings of the NEB per year. B. The president or a majority of the NEB members may call a meeting. C. A summary of actions taken at each meeting shall be published as soon as possible in an official publication of the Association. D. Meetings may be held by conference telephone or video calls, provided that all members are contacted and given twenty-four (24) hours notice.

MARCH 2012 | NARFE

ARTICLE IV Organizational Structure

RULE IV Organizational Structure

Section 1. Organization The Association shall be organized into a national headquarters, regions, federations and chapters. Section 2. National Headquarters The principal office of the Association shall be its national headquarters that is located at a site designated by the NEB within the Washington, DC metropolitan area (District of Columbia and adjoining areas of Maryland and Virginia). Section 3. Regions The regions shall promote membership recruitment and retention and leadership training. Regions may encompass any state, foreign country, territory or possession of the United States. Section 4. Federations A. Four (4) or more chapters may organize as a federation. Only one (1) federation will be authorized within any one (1) state, the District of Columbia, foreign country, territory or possession. B. A federation must adopt bylaws that do not conflict with the Association’s Articles of Incorporation, bylaws or standing rules. The federation’s bylaws and any subsequent amendments shall be approved at national headquarters. C. A federation shall ensure that its chapters’ concerns are presented to the NEB. D. A federation shall promote within its respective area the aims and objectives of the Association. E. Any action of a federation shall be advisory only in its effect upon the chapters and shall not bind the action of duly accredited chapter delegates to national conventions.

Section 1. Federations

Section 5. Chapters A. Five (5) or more members residing within the same geographical area, upon application, may be authorized by the federation president to proceed with the formation of a chapter. B. A chapter must adopt bylaws that do not conflict with the Association’s Articles of Incorporation, bylaws or standing rules. The chapter’s bylaws and any subsequent amendments shall be approved at national headquarters. C. A chapter shall, by assembling members into local groups, increase the scope and effectiveness of the Association.

Section 2. Chapters A. Applications for the formation of new chapters must follow the guidelines issued by the national secretary. B. Upon approval of a chapter’s bylaws, the Association president shall assign a chapter number and issue a charter, which will be inscribed with the names of the charter members of the chapter.

A. The purpose of a federation shall be to promote within its respective area the aims and objectives of the Association as specified in the Articles of Incorporation as follows: 1. To organize new chapters; 2. To visit chapters and promote greater chapter activity, including recruitment and retention of members; to reactivate weak and closed chapters, appoint volunteers for a one-year period to chapters needing officers and, as need arises, provide service to members of closed chapters by assigning them to a nearby or state chapter; 3. To stimulate fraternal cooperation among all chapters in the area for their mutual benefit and for the benefit of the Association; 4. To keep unaffiliated chapters informed of the advantages of membership in the federation and solicit their affiliation; 5. To maintain constant vigil over the status of legislation in the various legislatures in the area and to take such action with respect to any such legislation as is beneficial to Association members. B. The Association shall furnish to each federation the names and addresses of all eligible active and retired civilian federal employees in its respective geographic area.

C. Chapter objectives are to: 1. Establish at the local level programs for the recruitment and retention of Association members; 2. Keep members informed on the plans and activities of the Association; 3. Gain the members’ appreciation of the Association’s need for and importance of their active support;

NARFE | MARCH 2012

ARTICLE IV Organizational Structure

RULE IV Organizational Structure 4. Provide opportunities at the local level to become well informed on the issues confronting the Association at the federal and state levels; 5. Provide mutual assistance and support to solve problems that an individual member may be unable to solve alone; and 6. Establish at the local level a means of direct participation in achieving Association objectives and goals. D. To ensure proper collection of chapter dues, as well as accurate chapter officer information, chapters shall submit to the national headquarters by January 1 annually the appropriate NARFE form listing the chapter dues amount. National headquarters shall collect these dues and remit them on a monthly basis to the respective chapters. E. The Association shall furnish to each chapter the names and addresses of members of that chapter. The Association shall also provide the names and addresses of prospective members. A chapterâ&#x20AC;&#x2122;s roster of voting members must be kept separate from its roster of non-voting members.

D. National membership is a prerequisite to chapter membership. E. A chapter shall establish dues for its own members and may exempt dues for honorary, distinguished and other special members in accordance with the chapterâ&#x20AC;&#x2122;s bylaws. ARTICLE V Annual Meetings, National Conventions and Federation Presidents Meetings

RULE V Annual Meetings and National Conventions

Section 1. Annual Meetings Annual meetings of members shall be convened at a time and place or in the manner determined by the NEB.

Section 1. Annual Meetings A. Each year the NEB shall determine and announce to all members when and where or how an annual meeting will be convened during the following year. B. Members entitled to vote who participate at the annual meeting in person shall discuss and vote on matters in accordance with applicable law.

Section 2. National Conventions National conventions of the Association shall be held at approximately two (2) year intervals at a site selected by the NEB, during which the annual meeting of members shall convene.

Section 2. National Conventions A. Time and Place 1. National conventions shall be held usually in even-numbered years. 2. Cities, after reviewing the Request for Proposal (RFP), that desire to host the national convention shall make their requests to national headquarters by March 31 four (4) years prior to the requested convention date. 3. The NEB site selection committee shall visit proposed sites to determine their suitability to host a national convention. The committee shall invite federation representatives, if available, to accompany it to proposed venues. 4. Federations and chapters in the city selected by the NEB shall be able to nonconcur with the selection if they are unwilling to host the national convention with help from national headquarters.

A. Delegates 1. A chapter shall be entitled to one (1) delegate for each fifty (50) chapter members or fraction thereof. 2. National officers, regional vice presidents and federation presidents shall have the status of Delegate-at-Large.

3. A quorum of the convention for the transaction of business shall be a majority of the accredited delegates provided that at least ten percent (10%) of the chapters are represented.

B. Committees 1. Committees as are required for the efficient and orderly conduct of the convention shall be selected by the president at least sixty (60) days prior to the opening of the convention. 2. To the extent practicable, the NEB shall ensure that all federations are represented on a committee at each national convention. 3. The names of members appointed to convention committees shall be included in the issue of the publication that is issued for the month preceding the month of the convention.

MARCH 2012 | NARFE

ARTICLE V Annual Meetings, National Conventions and Federation Presidents Meetings

B. Voting 1. All floor voting is by delegates present with one vote each. 2. Ballot voting a. Officers listed in Section 2.A.2. of this Article shall be entitled to one (1) vote in addition to any other votes that they may be entitled to as chapter delegates or proxy holders. b. A chapter may cast as many votes as the number of delegates to which it is entitled under the provisions of Section 2.A.1. of this Article. c. Proxy votes shall only apply to votes by ballot. Voting on all other matters raised at the convention will be by delegates. d. A two-thirds (2/3) vote by ballot shall be required for approval of any resolution or report that recommends changes in the compensation of the national officers or of the regional vice presidents. e. A two-thirds (2/3) vote by ballot shall be required for approval of any resolution or report that recommends a change in national dues.

RULE V Annual Meetings and National Conventions 4. Substitution of committee members may be made later as needed. 5. No national officer, regional vice president or special staff member shall be appointed as a member of any convention committee nor shall they serve in an advisory capacity or as an observer on any convention committee unless requested by the committee. 6. Duties of the convention committees shall be as prescribed in the various convention committee guidelines published by national headquarters. C. Special Resolutions Procedures The resolution or report that recommends changes in the compensation of the national officers or of the regional vice presidents or changes in the national bylaws governing national dues shall be placed before the convention and finalized by written or electronic ballot before the close of business on the third day of the convention. A two-thirds (2/3) vote shall be required for approval. No subsequent motion to reconsider the vote or to recall the motion on the subject shall be considered at the convention in session. D. Ballot Voting 1. If a federation president is unable to serve, any federation officer, in order of succession, shall serve as delegate-at-large for the federation. 2. On or before the first day of the fourth month prior to the month of the national convention, the number of voting members will be determined by national headquarters and furnished to each chapter. 3. A chapter entitled to two (2) or more delegates shall designate one (1) of their delegates to be the voting representative to cast the chapter’s vote. If the designated voting representative for any reason cannot cast the chapter’s vote, any other delegate of that chapter may be selected as its voting representative. 4. The vote of each chapter is to be divided according to the delegates’ choices. 5. When a chapter has only one (1) delegate to the convention and that delegate for any reason is unable to cast the chapter vote, then the chapter’s ranking federation officer in attendance shall designate another delegate to be the voting representative for that chapter. 6. A chapter not represented by a delegate may select as its proxy delegate, with the right to cast the entire chapter vote, any delegate or delegate-at-large of the proxy giver’s federation. In the event the proxy holder, for any reason, cannot cast the proxy vote then any other member of the proxy holder’s federation, who is designated by the federation president or in his/her absence the delegate-at-large representing that federation, may cast said proxy vote. In the absence of any delegate or delegateat-large from that federation, any other delegate from the proxy holder’s region, who is designated by that region’s vice president, or in his/her absence, the ranking national officer in attendance, may cast said proxy vote. 7. No delegate or delegate-at-large shall serve as proxy for more than three (3) chapters. 8. All proxies must be received at national headquarters at least fifteen (15) days before the opening of the convention, shall be subject to change only in accordance with the provisions of D.6. above, and shall contain a certification by the secretary of the chapter that the person named was duly designated as a proxy by the chapter. 9. The chapter secretary or chapter president will certify the delegate forms for all chapter delegates.

Section 3. Chair of Annual Meetings and National Conventions The President of the Association or his designee shall preside as chair of the annual meetings and also as chair of the national conventions. Section 4. Federation Presidents Meetings The national president shall convene an annual meeting with the federation presidents to discuss subjects of mutual interest.

NARFE | MARCH 2012

ARTICLE VI Indemnification and Insurance Section 1. Indemnification The Association shall indemnify any director or officer who is a party, or is threatened to be made a party, to any proceeding to the fullest extent now or hereafter permitted by District of Columbia law. Section 2. Insurance To the fullest extent permitted by District of Columbia law, the Association may purchase and maintain insurance on behalf of any person who is or was a director or officer of the Association. ARTICLE VII Parliamentary Authority The rules contained in the current edition of Robert’s Rules of Order Newly Revised shall govern the Association in all cases to which they are applicable and in which they are not inconsistent with these bylaws, applicable statutes or any special rules of order the Association may adopt. ARTICLE VIII Amendments

RULE VI Amendments

Section 1. Power and Initiation A. The power to amend or repeal these bylaws is reserved exclusively to voting members of the Association. B. A chapter, a federation executive board, a federation convention, the NEB or any special or advisory committee designated by the NEB may submit proposed amendments to these bylaws provided those amendments were adopted by a two-thirds (2/3) affirmative vote of members eligible to vote at a meeting of the body making the proposal.

Section 1. Bylaws Amendments

Section 2. Adoption A. Adoption of amendments to these bylaws at a national convention requires a sixty (60) days’ prior notice and a two-thirds (2/3) vote by ballot. B. Adoption of amendments at any other time requires a referendum to the chapters as provided in Section 4. below.

A. Amendments to the bylaws which are approved by a two-thirds (2/3) vote at a convention but which were not sent to the chapter secretaries and convention delegates at least sixty (60) days prior to the convention must be ratified by referendum to the chapters before being adopted [See bylaws Article VII, Section 4].

Section 3. Convention Bylaws Committee Options The convention bylaws committee may recommend, with no increase in scope, proposed amendments to these bylaws or may combine similar proposed amendments, preparing a single substitute amendment for the body to consider. Amendments adopted by a two-thirds (2/3) vote by ballot will go into effect immediately.

B. For chapter referendums, all chapters and each delegate-at-large shall have a period of three (3) months in which to vote on said amendment and certify the vote to the national office or to an independent vote-counting agency selected by the NEB.

Section 4. Referendum to the Chapters A referendum to the chapters proposing amendments to these bylaws outside the framework of national conventions shall be published in the Association’s official publication with ballots forwarded to each chapter’s secretary and delegate-at-large. A two-thirds (2/3) affirmative vote is required for adoption provided at least ten percent (10%) of the chapters respond.

C. Chapters chartered prior to the start of a referendum voting period shall be entitled to vote in the referendum, and for this purpose, may cast as many votes as their current membership entitles them under the provisions of these bylaws. D. Each person occupying a position classified as a national convention delegate-at-large, for this purpose, shall be entitled to one (1) vote. Section 2. Standing Rules Amendments A. Amendments to any of the standing rules shall require submission of a resolution which will be processed in the same manner as prescribed for a bylaws amendment by either convention delegates or by a referendum to the chapters. B. Amendments proposed by the procedure described above shall require a majority vote for approval, unless a two-thirds (2/3) vote is required by the bylaws or the standing rules. C. Amendments to the standing rules which are proposed at a convention with no prior notice may be approved by a two-thirds (2/3) vote by ballot, providing that at least ten percent (10%) of all chapters are represented at the convention. D. No standing rule or resolution is in order which would conflict with the Articles of Incorporation or the bylaws.

MARCH 2012 | NARFE

National Active and Retired Federal Employees Association

✄ Cut Along Dotted Line ✄

2012 Scholarship Application Applicants: • Must be high school seniors planning to attend an accredited college full-time in the fall/winter of 2012. • Must have a grade point average of at least 3.0 on an unweighted 4.0 scale. • Must be sponsored by a parent, grandparent or greatgrandparent who is a current NARFE member. (Step parents, step grandparents, etc., can also sponsor.) Sponsor must be living at the time application is submitted. • Must provide your email address on the application. Your application receipt will be sent to this email address; please add “confirmation@feea.org” to your address book. • Must provide the following materials in your application packet: ❏ Official 2012 NARFE scholarship application. Photocopies are acceptable. ❏ Full transcript, including fall/winter 2011 grades. Report cards and photocopies are acceptable. If mailed separately by the school, must arrive by program deadline. ❏ Copies of ACT, SAT or other entrance examination scores. (Home-schooled students must provide equivalent of transcript and test scores as applicable.) ❏ List and brief description of any awards or volunteer/ community service activities (not to exceed two pages). ❏ Written recommendation from a teacher or counselor, on school or other official letterhead. ❏ One stamped, self-addressed #10 envelope ❏ Essay

Essay Information The essay must be typed, double-spaced, not more than two pages on the following topic: Recent crises have shown us that we live in a world more interconnected than ever before. What is the most positive attribute of American government that other nations can learn from us? What might we learn from other countries’ systems of government? All of the above materials (except transcript, if necessary) must be mailed in the same 9”x12” (or larger) envelope, postmarked no later than April 27, 2012, to: NARFE Scholarship Award, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227. DO NOT FOLD MATERIALS. DO NOT USE STAPLES OR PAPER CLIPS. Please note: All materials submitted with the application will become the property of FEEA and will not be returned under any circumstances. If needed, make a copy of the information for yourself before mailing. A total of 60 scholarships of $1,000 each will be awarded. Applicants will be notified of the judges’ decision by the end of August. A list of winners and their NARFE sponsors will appear on the NARFE member website at www.narfe.org and will be published in the December issue of NARFE magazine. The NARFE Scholarship Program is administered by the Federal Employee Education & Assistance Fund (FEEA) and is made possible by your tax-deductible contributions to the NARFE-FEEA Scholarship Fund, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227. For more information, obtain a copy of NARFE publication F-105, A Guide to NARFE’S Annual Scholarship Awards Program. To get your copy, send an email to natvp@narfe.org; download it from the NARFE website, www.narfe.org; or call Headquarters and ask for the Office of the National Vice President. The F-105 may also be ordered using the F-18.

Please complete the following. Incomplete applications and applications sent to NARFE Headquarters will not be considered. Student’s Name:______________________________________

I am taking college courses in high school: ❏ Yes

Complete Home Address:

NARFE Member’s Name: ______________________________

____________________________________________________

Relationship to Applicant:

____________________________________________________

❏ Mother ❏ Father ❏ Grandfather ❏ Grandmother

Home Telephone _____________________________________

❏No

NARFE Member No.: __________________________________ Email Address: _______________________________________ Applicant’s Grade Point Average (GPA): __________________ (Applicants must have a cumulative GPA of 3.0 on an unweighted 4.0 scale) College or University (planning to attend): ________________ ____________________________________________________ (Must be a college freshman by fall/winter 2012)

Chapter No.: ________________________________________ Member’s Complete Home Address: ____________________________________________________ ____________________________________________________ Member’s Telephone: _________________________________ Member’s Email address: ______________________________

All of the above materials (except transcript – if necessary) must be mailed, unfolded, in the same 9” x 12” (or larger) envelope postmarked no later than April 27, 2012, to: NARFE Scholarship Award, 3333 S. Wadsworth Blvd., Suite 300, Lakewood, CO 80227 NO STAPLES OR PAPER CLIPS, AND DO NOT FOLD NARFE | MARCH 2012

NARFE Perks NARFE Perks are designed to provide NARFE members with a quality option in their search for commonly used products and services. NARFE makes no guarantee on any products and services listed below and encourages its members to shop and compare before making a decision on any financial matter.

MOVING SERVICES

NARFE MEMBER HOMEBENEFITS 1-800-666-9203 http://narfe.myhomebenefits.com • Earn thousands in cash-back rewards when you buy or sell a home* • Shop competitive mortgage rates, receive discounts on closing costs, plus take advantage of your VA Loan Benefits • Receive preferred pricing on interstate moving services with the nation’s most trusted moving company – Allied Van Lines! *State restrictions apply. Call or visit website for details.

BEKINSVAN LINES 1-800-456-6832 (M-F, 8 a.m.-5 p.m. CT) narfe@bekins.com All NARFE members will receive discounted pricing for all interstate shipments. Discount will apply to packing and moving services and valuation protection. All intrastate shipments, locals and international moves will be competitive in cost based on your geographical location. Mention you are a NARFE member and transportation agreement #00930.

VACATION RENTALS

EndlessVacation Rentals® As a member of NARFE, you will receive 10% off the “Best Available Rate” at vacation rental properties booked at www.evrentals.com/narfe or by calling 1877-670-7088, prompt 3, and providing promotion code 20672 at time of booking.

INSURANCE

TRAVEL

NARFE INSURANCE SERVICES

CRUISE SALE!

1-800-233-5764 Insurance plans designed and administered exclusively for NARFE members. Call for information on Whole and Term Life, Hospital Indemnity, Accidental Injury and Death Plan, Dental Plan and Cancer Care Plan. For information on Long Term Care call the Long Term Care Unit at 1800-358-3795.

Unbeatable Deals on Royal Caribbean Cruises Starting at

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GEICO:1-800-368-2734 NARFE members with good driving records may be eligible for quality automobile insurance from GEICO. Ask about the NARFE discount now available to members in many states. Call today for your free, no-obligation rate quote. Be sure to mention that you’re a NARFE member! • Discount amount varies in some states • Discount not available in all states or in all GEICO companies • One group discount applicable per policy.

EMERGENCY SERVICES SINCE 1974 1-800-423-3226 Medical Air Services Association has been the industry leader in prepaid emergency assistance services for more than 30 years. NARFE members have experienced MASA’s “peace of mind” services since 2001. Now NARFE members are entitled to even more: air ambulance transportation, helicopter transportation, ground ambulance, vehicle return, mortal remains transport, and much more! Call MASA Today. It Could Save Your Life!

1-800-607-4538 www.NARFEtravel.com

HEARING BENEFITS

Two discount programs to choose from: ValueAdd® or MemberPlus®. Similar to a warehouse membership, MemberPlus saves hundreds more for a $108 yearly membership.

MemberPlus also includes: • 45-day, money-back guarantee on membership fee and all purchases • 48 batteries, 3-year warranty, and onetime loss and damage for 3 years (small manufacturer deductible applies) on each purchased hearing aid • Guest membership for up to four extended family members (siblings, parents, etc.) for only $79 each • Combine with an existing health plan hearing benefit to maximize savings Visit TruHearingMemberPlus.com for more information, or call 877-360-2442 Mon-Fri, 9 a.m.-9 p.m. East Coast Time

MARCH 2012 | NARFE

HOTELS

CAR RENTALS

CREDIT UNION

CHOICE HOTELS INTERNATIONAL With 6,000 hotels in the United States and throughout the world, Choice Hotels® offers something for everyone. Join the Choice Privileges® rewards program and earn points with every qualifying stay toward free nights, Airline Rewards, gift cards and more. As a NARFE member, receive 20% off your next stay at participating hotels when you use Special Rate ID 00801967. This offer is subject to availability and cannot be combined with any other offer. Advance reservations required. To book, visit choicehotels.com or call 800-258-2847.

ALAMO Drive Happy® with Alamo® where NARFE members receive year-round discounts. Call 1-800-462-5266 and reference Contract ID 262544.

NATIONAL You Drive A Hard Bargain. Receive up to 20% off rentals at National Car Rental. To make a reservation call National Car Rental at 1-800-CAR-RENT® and reference Contract ID 5282909.

NARFE’S OFFICIAL CREDIT UNION As a member of NARFE, you have the privilege of joining NARFE Premier Federal Credit Union, which has been serving members since 1935. We offer extensive services at competitive rates to members nationwide. Your savings are federally insured to at least $250,000 and backed by the full faith and credit of the United States Government. For more information, call 800-3281500, e-mail jparish@narfepremierfcu. org or visit us at NARFEpremierfcu.org.

CREDIT CARD AVIS:1-800-331-1441

WYNDHAM HOTEL GROUP As a member of NARFE, you will receive up to 20% off the “Best Available Rate” at participating locations when you travel. Call and give agent your special discount ID number, 8000002694, at time of booking to receive discount. Whether you are looking for an upscale hotel, an all-inclusive resort or something more cost-effective, we have the right hotel for you... and at the right price. So start saving now. Call our special memberbenefits hotline 1-877-670-7088 and reserve your room today at one of these fine hotels: Wyndham Hotels and Resorts®, Days Inn®, Ramada Worldwide®, Super 8®, Wingate By Wyndham®, Baymont Inns and Suites®, Hawthorn Suites® By Wyndham, Microtel Inns and Suites®, Howard Johnson®, Travelodge® and Knights Inn®.

NARFE | MARCH 2012

The employees/owners of Avis offer guaranteed low rates and quality services to members of NARFE. Mention ID# A991900.

HEALTH SCREENING

LIFE LINE SCREENING Life Line Screening, America’s leading provider of community-based preventive health screenings, will conduct the following screenings using state-of-the-art ultrasound technology in your neighborhood: 1. Stroke/Carotid Artery 2. Abdominal Aortic Aneurysm 3. Atrial Fibrillation 4. Peripheral Arterial Disease. You will receive a confidential written report within 21 days. Life Line Screening and NARFE encourage you to share these test results with your doctor. All four screenings cost just $135. To schedule an appointment, please call 1-800-324-9906 and give the operator code number: BKHN075 or visit www.lifelinescreening. com/NARFE. Coverage may vary and may not be available in all states.

Bank of America now offers the officially approved credit card program for NARFE, featuring the Platinum Plus® MasterCard® with WorldPoints. This is the only credit card that helps support NARFE every time you use it to make a purchase–at no additional cost to you. Call toll-free 1-866-438-6262 Use NARFE’s full name, not NARFE. Use priority code: UABEWD.

NARFE MERCHANDISE NARFE GENERAL STORE

Order Official NARFE name badges, customizable NARFE logo products and plaques. www.narfegeneralstore.com Phone: 252-353-4005

For the Record The chart below tracks the CPI-W, the monthly inflation change, and the cumulative percentage gain for the next CSRS and Social Security COLA. CPI-W October 2011 November December January 2012 February March April May June July August September

223.043 222.813 222.166

MONTHLY % CHANGE % CHANGE FROM 223.2 -0.29 -0.10 -0.29

January Was Good for Funds By William H. Jacobson

orld equity markets expanded strongly in January, reflecting an improved outlook toward the eurozone debt crisis even as prices were tempered at the end of the month by disappointing U.S. economic statistics. In spite of this flattening during the final week of the month, the C Fund returned 4.50 percent, slightly outperforming the S&P 500 Index total return of 4.48 percent. The S Fund returned 7.59 percent in January, its third best monthly return in two years. The I Fund return was likewise strongly positive at 5.36 percent for January. The Federal Reserve continued to pursue an easy monetary policy; bond prices rose strongly over the final week of January, contributing to a 0.88 percent return for the F Fund.

William H. Jacobson, CFA, is a financial analyst for the Thrift Savings Plan. 50

-0.09 -0.19 -0.48

CPI Declines in December

he Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) declined 0.29 percent in December. To calculate the 2013 cost-of-living adjustment (COLA), the indices of July, August and September 2012 will be averaged for a thirdquarter determinant, which will be compared with the 2011 thirdquarter base of 223.233. The December index of 222.166 is down 0.48 percent from the base. Benefits awarded under the Federal Employees’ Compensation Act (FECA) to individuals suffering work-related injuries or illnesses are adjusted according to each calendar year’s percentage change in the CPI-W. December’s index is 3.2 percent higher than the December 2010 base index of 215.262. This means that benefits for FECA recipients will increase by 3.2 percent, beginning March 1. ■

Thrift Savings Plan Investments* Month G Fund 0.22% 2011 February March 0.26% April 0.25% May 0.25% June 0.21% July 0.22% August 0.19% September 0.16% October 0.14% November 0.14% December 0.15% 2012 January 0.13% Last 12 Months 2.34%

F Fund 0.26% 0.06% 1.28% 1.31% (0.30%) 1.59% 1.45% 0.73% 0.11% 0.01% 1.01% 0.88% 8.70%

C Fund 3.42% 0.04% 2.96% (1.13%) (1.67%) (2.04%) (5.44%) (7.03%) 10.93% (0.21%) 1.04% 4.50% 4.24%

S Fund 4.52% 2.06% 2.94% (1.27%) (2.35%) (3.14%) (8.12%) (10.73%) 14.09% (0.51%) (0.04%) 7.59% 2.68%

Month 2011 February March April May June July August September October November December 2012 January Last 12 Months

L 2020 2.15% (0.03%) 2.37% (0.74%) (0.84%) (0.94%) (3.69%) (4.73%) 6.18% (0.34%) 0.11% 3.03% 2.08%

L 2030 2.60% (0.05%) 2.83% (0.97%) (1.10%) (1.25%) (4.63%) (5.92%) 7.68% (0.49%) 0.09% 3.77% 1.85%

L 2040 2.95% (0.08%) 3.20% (1.15%) (1.30%) (1.49%) (5.37%) (6.85%) 8.83% (0.62%) 0.07% 4.34% 1.57%

L Income 0.90% 0.17% 1.01% (0.05%) (0.18%) (0.14%) (1.10%) (1.51%) 2.31% 0.02% 0.20% 1.18% 2.78%

I Fund 3.33% (2.23%) 6.03% (2.90%) (1.16%) (1.60%) (9.03%) (10.55%) 9.48% (2.46%) (2.03%) 5.36% (9.27%) L 2050 3.28% (0.15%) 3.57 (1.39%) (1.48%) (1.75%) (6.16%) (7.80%) 9.92% (0.78%) (0.01%) 4.87% 0.88%

*This chart is provided as a service to NARFE members who enrolled in the Thrift Savings Plan while employed by the federal government. Retirees are not eligible for enrollment. These returns are net of the effect of accrued administrative expenses and investment expenses/costs. Percentages in ( ) are negative. Source: tsp.gov.

MARCH 2012 | NARFE

¼ Safe, comfortable bathing from Jacuzzi What To Look For Enjoy A Bath Again… in a Walk-In Tub: Safely and Affordably Five major considerations to help ®

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over the side. It features a state-of-the-art acrylic surface, a raised seat, and the controls are within easy reach. No other Walk-In Tub features the patented Jacuzzi® PointProTM jet system. These high-volume, low-pressure pumps feature a perfectly balanced water to air ratio to massage thoroughly yet gently. Some swirl, some spiral, some deliver large volumes of water and others target specific pressure points. They are all arranged in precise locations designed to deliver a therapeutic massage, yet they are fully adjustable so that your bathing experience can be completely unique. Why spend another day wishing you could enjoy the luxury and pain-relieving benefits of a safe, comfortable bath. Call now and you’ll get an unsurpassed limited lifetime warranty. Knowledgeable product experts are standing by to help you learn more about this product. Call Today!

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¼ Warranty - Ask for a lifetime “no leak guarantee” The best tubs offer a lifetime warranty on both the tub and the operating system. ¼ Pain Relieving Therapy - Find a tub that has both water and air jet therapy to soak away your aches and pains preferably with a perfectly balanced water to air mix. ¼ Comfort - Insist on ergonomic design, easy-to-reach controls. ¼ Endorsements - Only consider tubs that are ETL or UL listed. Also look for a tub tested to IAPMO (Internat’l Assoc. of Plumbing and Mechanical Officials) standards and that’s USPC (Universal Spa Plumbing Code) Certified.

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